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KUALA LUMPUR (Oct 30): FBM KLCI today closed 1.89% lower due to profit taking amid cautious sentiment ahead of crucial events at home and abroad.
The downtrend was in line with declines in regional markets, as fears of a global economic slowdown amid a surge in coronavirus cases weighed on sentiment, while investors also looked towards the US presidential election. Next Tuesday (November 3).
Areca Capital Sdn Bhd CEO Danny Wong said overall investor sentiment was defined by caution amid the events of the coming week.
“Next week will be an eventful week with Budget 2021, the Bank Negara Malaysia Monetary Policy Meeting and the US presidential elections.
“As such, those who are currently sitting on earnings would want to make a profit, while those who are not yet are trading to mitigate uncertainties,” he said.
The KLCI closed 28.31 points lower at 1,466.89.
Weak sentiment swept across the trading floor with large-cap and small-cap stocks that were not spared from declines on the last trading day of the month as investors became even more cautious.
The FBM ACE index fell 3.845% or 377.34 points to 9,443.20, while the small-cap index fell 2.65% or 351.58 points to 12,896.64.
Bursa Malaysia registered a total of 944 declines today, compared to 211 winners and 390 accountants who closed unchanged.
Today around 5.9 billion shares worth RM3.91 billion were traded.
TA Securities Research said in its daily report that investors remain on the sidelines amid caution over the exponential rise in Covid-19 cases in the United States and Europe, as well as uncertainty ahead of the US elections.
“Key support for the index will be the 200-day moving average at 1,492, with the following chart support from Monday and September lows of 1,482 and 1,474 respectively, and stronger supports seen from the 38.2% FR from 1,207 to 1,618 up. at 1,461 and then 1,450.
“The immediate hurdles to the upside remain at the 50-day moving average at 1,518, with the next hurdle at the 100-day moving average at 1,538, followed by 1,560, and then the 100-week moving average at 1,574,” said the research house.
Top active accountants included AT Systemization Bhd, Diversified Gateway Solutions Bhd, and Vivocom International Holdings Bhd.
The main winners were Nationwide Express Courier Services Bhd, Advance Packaging Technology (M) Bhd and British American Tobacco (M) Bhd. In contrast, the main losers were Nestlé Bhd, PPB Bhd and Carlsberg Brewery Malaysia Bhd.
Reuters reported that Asian stocks weakened after the Wall Street selloff, as Covid-19 cases continued to rise in the United States, while fears of more lockdowns in Europe following moves by France and Germany this week. they also affected mood.
Japan’s Nikkei 225 Index fell 1.52% or 354.81 points to 22,977.13, Hong Kong’s Hang Seng closed 1.95% or 479.18 points lower at 24,107.42, while Shanghai’s Composite fell 1.47% or 48.19 points to 3,224.53.
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