KUALA LUMPUR, Malaysia (July 2): The enhanced movement control order (EMCO) published yesterday in a big part of Selangor and 15 locations in Kuala Lumpur frightened investors, causing the Bursa Malaysia to fall in early trade. The benchmark FBM KLCI had fallen by 0.06 of a point to 1,534.17 at 9.10 a.m., from a close of 1,534.23 the day before.
At 1,533.70, the market bellwether opened 0.53 of a point lower.
Losers outnumbered gainers 210 to 145 on the broader market, with 262 counters unchanged, 1,548 untraded, and 11 others suspended.
The company sold 483.15 million units worth RM186.83 million.
The application of the EMCO from tomorrow till July 16 due to sustained high infection rates, according to Malacca Securities, may further dampen investor mood.
Yesterday, Malaysia recorded 6,988 new Covid-19 cases, with Selangor continuing to have the greatest incidence.
The price of crude palm oil (CPO) increased after India decreased the import levy on CPO to 10%, according to a note.
Meanwhile, the price of Brent crude rose somewhat after the Organization of Petroleum Exporting Countries and its Allies (OPEC+) decided to postpone their decision on the oil production plan due to improving demand, while market participants forecast an increase in oil output in the future.
“As a result, given the firm Brent oil price of US$75 (about RM312.45), the oil and gas (O&G) sector may trade aggressively.”
Furthermore, given favorable Wall Street sentiment, bargain-hunting activities may arise for some beaten-down counters in sectors such as essential consumer, transportation and logistics, as well as technology companies,” it noted.
The Dow gained 0.4 percent overnight, boosted by strong IHS Markit Manufacturing Purchasing Managers’ Index (PMI) data for the US in June 2021, which rose to 62.1, the highest level since May 2007.
Malaysia, where the headline index plummeted drastically to a near-series low of 39.9 in June 2021 from 51.3 in May 2021, owing to tougher Covid-19 control measures, had the most marked worsening in circumstances among ASEAN countries, according to IHS Markit.
Top Glove Corp Bhd and Telekom Malaysia Bhd (TM) both down six sen to RM4.01 and RM6.08, respectively, while Hartalega Holdings Bhd fell nine sen to RM7.05, IOI Corp Bhd fell two sen to RM3.77, and RHB Bank Bhd dropped three sen to RM5.38.
IHH Healthcare Bhd, on the other hand, jumped seven sen to RM5.63 while Malayan Banking Bhd (Maybank) rose two sen to RM8.13.
Serba Dinamik Holdings Bhd gained one sen to 39 sen, Sarawak Consolidated Industries Bhd gained seven sen to 82 sen, and KPower Bhd gained four sen to 94.5 sen among the actives.
The FBM Emas Index dropped 9.51 points to 11,163.84, the FBMT 100 Index down 8.92 points to 10,877.56, and the FBM Emas Shariah Index dropped 16.69 points to 12,170.11 on the index board.
The FBM ACE fell 26.85 points to 7,079.65, while the FBM 70 dropped 45.30 points to 14,449.09.
The Financial Services Index increased 5.28 points to 15,135.41, the Industrial Products and Services Index fell 0.16 point to 186.44, and the Plantation Index increased 1.05 points to 6,446.14./n
