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KUALA LUMPUR (Nov 2): The FBM KLCI closed 0.43 points or 0.03% lower at 1,466.46 after choppy trading in the last hour amid a confluence of factors including the growing number of Covid-19 infections globally and lower oil prices before an event. – heavy week, which will see investors gearing up for Bank Negara Malaysia’s (BNM) interest rate decision and the announcement of Malaysia’s Budget 2021, in addition to the US presidential election.
BNM is scheduled to deliver its final monetary policy decision for 2020 tomorrow, the same day the US presidential election will take place.
On Friday (November 6), the Malaysian government is scheduled to present the country’s 2021 Budget in Parliament.
“There is another windfall tax rumor in the glove sector and thus it has been driving the sector lower, which contributed to KLCI’s lower position,” said the head of research at Malacca Securities Sdn Bhd, Loui Low, at theedgemarkets.com.
Earlier today, analysts at TA Securities Holdings Bhd wrote in a note: “Following last Friday’s sell-off to a new five-month low, technical trend indicators for the KLCI turned decisively bearish, which could accelerate losses. despite the momentum indicators registering more oversold conditions. Therefore, any attempt at an oversold bounce this week may prove fleeting, furthermore given the drop in oil prices amid increasing cases of Covid-19 in around the world that cloud the prospects for global growth, the ambiguity about the outcome of the US presidential elections, uncertainties before the expected 2021 budget that will be presented this Friday. “
In Bursa Malaysia at 5pm today, 5.94 billion securities were traded for RM3.29 billion. There were 688 people who lost versus 365 who won.
The KLCI closed lower after falling to its intraday low of 1,452.13. At a glance, the 30-constituent KLCI, which is trading mostly in negative territory today, rose to its intraday high of 1,468.09 amid choppy trading between 4pm and 5pm.
The KLCI cut losses at 5pm after the Asian equity indices closed higher. Asian stocks were reported to rebound from month-long lows today, helped by expanding Chinese manufacturing activity at its fastest pace in a decade, while oil prices plummeted as many Western countries fell back into lockdown. driven by the coronavirus.
A major risk event this week was reported to be tomorrow’s US presidential election with Republican President Donald Trump trailing Democratic challenger Joe Biden in national opinion polls.
“Polls in the most competitive states that will decide the elections, however, have shown a tighter race, still favoring Biden. MSCI’s broader index of Asia-Pacific stocks outside of Japan rose 0.36%, as China’s Caixin / Markit Manufacturing Purchasing Managers Index offered We hope that the region’s success in containing the coronavirus can spare it the economic pain that is being inflicted on Europe and the United States.
“The mood in Europe was pessimistic with many countries in the region battling new Covid-19 infections and slipping back into virus lockdowns.
“Oil prices fell 4% on Monday on concerns that expanding coronavirus lockdowns in Europe would weaken demand for fuel and amid concerns about turmoil during this week’s US presidential election. Brent crude oil futures for January fell $ 1.49, or 3.9%, to $ 36.45 a barrel at 0745 GMT, while US West Texas Intermediate futures were down $ 1.58. , or 4.4%, at $ 34.21, “Reuters reported.
Global crude oil price sentiment hit Bursa-listed oil and gas stocks. The Bursa Energy Index, which tracks share prices in these companies, closed down 2.42% to become the largest percentage decline among Bursa indicators, followed by a 1.87% drop. of the health index.
Manufacturers of rubber gloves are part of the Healthcare index, which includes pharmaceutical companies and hospital operators.
Across Bursa, those who declined sharply were glove maker Supermax Corp Bhd and the plantation-related company PPB Group Bhd.
Supermax’s share price closed 56 sen or 5.91% lower at RM8.91, while PPB closed 30 sen or 1.6% lower at RM18.50.
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