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PETALING JAYA: Following the example of the exciting US presidential election, as Donald Trump closes in on Wall Street darling Joe Biden, positive investor sentiment in Bursa Malaysia waned as they entered the afternoon trading session .
With US equity futures on a roller coaster ride, especially after Trump prematurely declared victory, the FBM KLCI cut most of its gains for the day and closed at 1,464.61 points, below the intraday high. of 1,473.53 points.
The 30-share index was up 3.16 points or 0.22% yesterday.
Bursa Malaysia, along with regional stock markets, rose during the day as investors weighed in on the results of the US presidential poll.
Wall Street had predicted that former Vice President Joe Biden would make a clean sweep of the electoral vote, resulting in the rally of the three major indices of the US stock market a day earlier.
However, the prospects of Biden winning the polls have become less decisive as Trump garnered 213 electoral votes to Biden’s 238 at press time.
Trump also led in most of the “swing states” that are crucial in deciding the next president of the world’s largest economy.
Talking to StarBiz, Equitiestracker Holdings Bhd
Research chief Peter Lim Tze Cheng (pictured) said that if Trump had actually won as he claimed, this would mean more uncertainties for global markets over the next four years.
“If Trump wins, we would see a continuation of nationalist policies. On the other hand, a Biden victory would mean a reduction in nationalist policies, ”he said.
When asked if the sharp drop in US equity futures after Trump’s untimely victory declaration was a sign of rejection from investors, Lim said this is not necessarily the case. “During the 2016 presidential poll, S&P futures in the United States fell substantially in the morning session as votes were counted, but at night, it rose again after the media reported that Trump had the majority.
“Investor reaction is unpredictable,” he said.
Meanwhile, Vincent Khoo, head of research at UOB Kay Hian Malaysia, said the market is seeking swift approval for a new stimulus package in the United States.
“It would need the approval of both parties.
“If Democrat Biden wins the presidential election and Republicans control the Senate, that would delay approval,” he said.
Commenting on the outlook for Bursa Malaysia, Khoo said the uncertainties affecting the stock market are expected to diminish in the future.
“Next season of results, led by glove manufacturers such as Top Glove Corp Bhd, it would help improve confidence and allay investor concerns about uncertainties, ”he said.
Bank, energy and plantation stocks were mixed despite gains in crude palm oil (CPO) and oil prices yesterday.
Among the banks, Malaya Banking Bhd and Hong Leong Bank Bhd were unchanged at RM7 and RM14.52 respectively, while CIMB Group Holdings Bhd It was up two sen to RM2.97 and RHB Bank Bhd was up one sen to RM4.25.
However, Public Bank Bhd it lost 10 sen to close at RM14.86. US light crude rose 22 cents to $ 37.88 and Brent rose 28 cents to $ 39.99.
Petronas Chemicals Group Bhd rose 13 sen to RM6.05 and added 1.6 points to FBM KLCI, Petronas Gas Bhd shed six sen at RM15.80 and Petronas Dagangan Bhd lost eight sen to RM17.50.
Dialogue group Bhd added three sen to RM3.65.
CPO for 3rd month delivery increased RM 20 to RM 3,090 per tonne.
KL Kepong Bhd rose 58 sen to RM22.26 and IOI Corp Bhd increased eight sen to RM4.42.
However, PPB Group Bhd fell eight sen to RM18.28 and Sime Darby Plantation Bhd fell three sen to RM4.83.
Top Glove lost 22 sen to RM8.10 and erased 2.77 points from the FBM KLCI but Hartalega Holdings Bhd he gained eight sen at RM17.84 and 0.42 of a point. Supermax Corp Bhd it lost 11 sen to RM8.84.
The overall breadth of the Bursa Malaysia market yesterday was positive with 702 winners, 377 losers and 397 counters unchanged.
The turnover was 7.30 billion shares valued at RM3.36bil.
On the external front, regional stock indices rose mainly.
Japan’s Nikkei 225 rose 1.72%, China’s rose 0.19%, Taiwan’s Taiex added 1.04%, South Korea’s Kospi rose 0.6% and the Straits Times index Singapore increased 0.79%.
However, Hong Kong’s Hang Seng Index lost 0.21%.
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