Bursa Malaysia opens lower across the board ahead of total lockdown

KUALA LUMPUR, May 31 — Bursa Malaysia opened the week in the red across the board on cautious market sentiment ahead of the total lockdown nationwide beginning tomorrow on the back of higher Covid-19 cases.

At 9.02am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) erased 23.64 points, or 1.48 per cent, to 1,570.80 from 1,594.44 at Friday’s close.

The index opened 23.4 points weaker at 1,571.04.

Market breadth was negative with losers outnumbering gainers 740 to 40, while 123 counters were unchanged, 1,279 untraded and 58 others suspended.

Total volume stood at 525.94 million units worth RM184.68 million.

Malacca Securities Sdn Bhd, in a note, said the local stocks may face selling pressure today following the National Security Council’s decision to implement a two-week full movement control order (FMCO) phase one (June 1-14) nationwide.

This was due to the spike in daily Covid-19 cases. Malaysia posted 6,999 new cases on Sunday.

“We expect a negative bias tone on the broader market over the total lockdown. However, investors may focus on vaccine or pharmaceutical-related stocks amid the ongoing vaccination programme.

“Besides, sectors such as technology and shipping that are linked globally, as well as PPE-related should continue to be operational under the FMCO and should get traders attention,” the brokerage firm said.

Globally, the US stock markets marched higher as the Dow registered small gains (+0.2 per cent), boosted by optimism over the massive budget proposal from US President Joe Biden.

European stock markets were upbeat, while Asian stock markets closed mostly higher.

Meanwhile, Rakuten Trade Sdn Bhd expects the index to hover within the 1,590-1,600 range today, with both the Brent crude and crude palm oil (CPO) looking good, and CPO to close on the all time highest average for May.

Among the heavyweights, Maybank fell five sen to RM8.15, Public Bank declined eight sen to RM4.19, PetChem depreciated 18 sen to RM7.96, while Tenaga was 10 sen lower at RM9.89.

Other top losers included MPI which shed RM1.20 to RM36.00, Nestle which fell RM1 to RM135.50, and BAT which contracted 54 sen to RM15.26.

Of the actives, Tanco was flat at 14.5 sen, Vsolar eased half-a-sen to two sen, while Kumpulan Jetson was 2.5 sen higher at 61 sen.

On other developments, trading of shares in Eka Noodles Bhd is suspended today after the local bourse rejected its application for a further extension of time to submit its revised proposed regularisation plan.

In a filing last last week, the rice and sago sticks manufacturer said Bursa Securities felt the company had not demonstrated to its satisfaction any material development towards the finalisation and submission of the regularisation plan to the regulatory authorities.

Following the suspension, Eka Noodles will be delisted on June 2, unless an appeal against the delisting is submitted before May 28.

On the index board, the FBM Emas Index contracted 217.25 points to 11,361.25 and the FBMT 100 Index depreciated 189.19 points to 11,087.41.

The FBM Emas Shariah Index erased 237.70 points to 12,609.34, the FBM 70 weakened 335.27 points to 14,534.38, and the FBM ACE dropped 291.47 points to 7,552.41.

Sector-wise, the Financial Services Index dipped 219.36 points to 14,947.77, the Plantation Index slipped 75.71 points to 6,832.75, and the Industrial Products and Services Index edged down 5.64 points to 187.45. — Bernama