Bursa opens lower, dragged by global recession fears

KUALA LUMPUR: Bursa Malaysia extended yesterday’s losses to start the day weaker, as volatility emerged across global equities stoked by fears over global recession following the uptick in new COVID-19 cases.

The key index opened 2.04 points lower at 1,320.62. At 9.30 a.m., The FBM-KLCI was at 1,316.94, down 5.72 points, the FBMACE was at 3,954.59, up 61.41 points, and the FBMEmas was at 9,055.92 down 30.26 points.

There were 232 gainers, 184 losers and 206 counters traded unchanged on the Bursa Malaysia.

Turnover was at 461.813 million shares valued at RM248.349 million.

Malacca Securities Shd Bhd said the market sentiment also turned downbeat following the World Bank’s move to slash economic growth of Asian countries growth due to impacts by COVID-19.

“Consequently, the odds of recession now have jumped to 40 per cent from 25 per cent projected at the start of the year,” it said in a note today.

Under the prevailing scenario, the brokerage firm said a pullback may see the local bourse be supported at the 1,300 psychological level, followed by the 1,250 level.

“On the upside, the 1,360 and 1,400 levels will serve as the resistance,” it added.

Among the heavyweights, MISC lost 13 sen to RM7.36, Tenaga declined 10 sen to RM11.72, Maxis slid five sen to RM5.03, CIMB went down three sen to RM3.50 and Sime Darby Plantation was four sen easier at RM4.70.

Of the actives, Hubline and XDL edged down half-a-sen each to 4.5 sen and nine sen, Minetech Resources added one sen to 1.5 sen, Jaks was two sen better at 81 sen while Sapura Energy was unchanged at 7.5 sen.

Top loser is Carlsberg, dropping 66 sen to RM24.10 while top gainer is Nestle, surging RM2.90 to RM136.50.

On the index board, the FBM Emas Index trimmed 17.52 points to 9,068.65, the FBM Emas Shariah Index skidded 17.75 points to 9,905.64 while the FBMT 100 Index fell 19.06 points to 8,989.81.

The FBM 70 shrank 2.35 points to 10,508.85 but the FBM Ace rebounded 17.38 points to 3,10.56.

Sector-wise, the Industrial Products and Services Index edged down 0.14 of-a-point to 103.4, the Financial Services Index depreciated 56.11 points to 11,988.34 and the Plantation Index weakened 30.59 points to 6,076.69. -Bernama

source https://www.thesundaily.my/business/bursa-opens-lower-dragged-by-global-recession-fears-CE2204598