KUALA LUMPUR, Dec 2 — Bursa Malaysia opened slightly higher today, but retreated thereafter as market volatility remained amid concerns over the Omicron variant impact and tracking the negative performance overnight on Wall Street, an analyst said.
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 1.58 points to 1,495.35 from 1,496.93 at Wednesday’s close.
The market bellwether opened 1.14 points higher at 1,498.34.
On the broader market, losers trounced gainers 237 to 95, while 205 counters were unchanged, 1,740 untraded, and 22 others suspended.
Turnover stood at 159.46 million valued at RM82.82 million.
Malacca Securities Sdn Bhd believes the volatility on the local bourse may stay, taking into account the government's decision to bar travellers from eight countries with confirmed cases of the Covid-19 Omicron variant.
The eight countries are South Africa, Botswana, Eswatini, Losetho, Mozambique, Namibia, Zimbabwe, and Malawi.
Nevertheless, downside may be cushioned by the improved Malaysia’s November Purchasing Manager Index (PMI), which signalled improved operating condition.
Commodity-wise, it said crude oil price remains soft, but crude palm oil (CPO) price staged a mild rebound.
“Investors may take a further step back from recovery-theme sectors on the back of increasing concerns over Omicron variant, which may potentially delay the economic recovery progress.
“Besides, buying interest might be seen in the healthcare sector following recent selldown,” the brokerage firm said in its Market Pulse note today.
On technical outlook, it said the next support level for the index is located at 1,480, while the resistance is pegged along 1,515-1,530.
Among the heavyweights, Maybank and Tenaga added one sen each at RM7.96 and RM9.23 respectively, Public Bank, Petronas Chemicals and CIMB were flat at RM3.19, RM8.50 and RM5.03, respectively, while IHH down six sen to RM6.51.
Of the actives, Impiana Hotels rose half-a-sen to 8.5 sen, TH Heavy Engineering eased 4.5 sen to two sen and KNM was flat at 16 sen.
On the index board, the FBM Emas Index narrowed 15.12 points to 10,953.67, the FBMT 100 Index contracted 13.60 points to 10,651.65, and the FBM Emas Shariah Index was 23.09 points lower at 11,955.37.
The FBM 70 reduced 27.66 points to 14,341.33, while the FBM ACE increased 16.08 points to 6,481.70.
Sector-wise, the Industrial Products and Services Index shed 0.39 of-a-point to 194.02, the Financial Services Index improved 10.47 points to 14,938.84, and the Plantation Index slid 8.91 points to 6,428.52. — Bernama
