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KUALA LUMPUR (Oct 26): Selling pressure continued to manifest itself in Bursa Malaysia today, with the low-line being the hardest hit by declining investor sentiment due to political developments.
At the close of the session today, the FBM ACE was the main loser among the Bursa Malaysia indices, with losses that exceeded those of the FBM KLCI index.
The FBM ACE Index finished 3.61% or 383.30 points lower at 10,223.47, while the FBM Small Cap Index finished 1.25% or 202.69 points lower at 15,977.44.
Meanwhile, the overall FBM KLCI index fell 0.03 points to 1,494.61.
Across Bursa Malaysia today, 677 counters showed declines, 301 counters rose, while 491 counters ended the trading day unchanged.
The trading volume stood at 5.80 billion shares, while the daily turnover was RM4.71 billion.
Today’s main assets were Mr DIY Group (M) Bhd, Vsolar Group Bhd and Advance Synergy Bhd.
Kuala Lumpur Kepong Bhd, Malaysia Pacific Industries Bhd and Fraser & Neave Holdings Bhd were the main winners, while the main losers were Dutch Lady Milk Industries Bhd, British American Tobacco (M) Bhd and Duopharma Biotech Bhd.
According to Areca Capital CEO Danny Wong, retail investors have been supporting publicly traded small- and mid-cap companies.
As such, developments surrounding the possible implementation of a state of emergency in the country have not helped market sentiment among retail investors.
“There are also concerns around the 2021 budget. Given recent events, there are some who are concerned. [about whether] the government spending plan will be approved by parliament, ”he said.
He explained that the consensus believed the market would perform even worse today, but Yang-di-Pertuan Agong’s statement that an emergency declaration was not necessary at this point mitigated some of the downside risks.
The mounting cases of Covid-19 and the upcoming US presidential election on November 3 also contributed to the generally cautious sentiment.
Reuters reported that Asian stocks started the week in a moderate fashion following increasing cases of Covid-19 in Europe and the US, while Chinese government leaders met to discuss the economic giant’s economic plan for 2021 to 2025. .
“The United States has seen the highest number of new cases of Covid-19 in the last two days, while France also established registries of unwanted cases and Spain announced a state of emergency,” he noted.
Overall, Asian stocks were in the red. The Nikkei 225 was down 0.09% or 22.25 points at 23,494.34, while the Shanghai Composite closed 0.82% or 26.88 points below 3,251.22.
By contrast, Hong Kong’s Hang Seng Seng Index rose 0.54% or 132.65 points to 24,918.78.
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