KUALA LUMPUR, Feb 2 — Shares on Bursa Malaysia were mixed at the close on Tuesday, as profit-taking activities in small cap and financial services stocks took a toll on its performance following the rebound earlier today.
At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 11.68 points or 0.74 per cent to 1,578.08 from Friday’s close of 1,566.40.
The index opened 8.63 points higher at 1,575.03 and hovered between 1,571.30 and 1,585.18 throughout the day.
On the broader market, however, losers thumped gainers 726 to 452, while 415 counters were unchanged, 527 untraded and 12 others suspended.
Total volume fell to 5.92 billion units worth RM4.39 billion from 6.54 billion units worth RM6.37 billion on Friday.
The market was closed on Monday for the Federal Territory Day.
Today, the government has announced its decision to extend the movement control order (MCO) 2.0 to February 18 in all states except Sarawak.
Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob said the decision was made based on the risk assessments and advice of the Health Ministry after finding that the daily tally of Covid-19 cases in all states remains on an upward trend.
Commenting on the move, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said that the market has largely priced in the extension of the MCO due to the prolonged high number of cases which reached above 5,000 per day.
“But as we all know, a lot of business sectors have been allowed to operate like construction, manufacturing, services, trade and distribution, agriculture and farming.
“Nevertheless, there will be an impact on the economic output for the first-quarter gross domestic product (GDP), and we currently have a four per cent GDP growth estimate for 2021 as we have taken into account the possible extension of the MCO,” he told Bernama.
Adam opined that the market may be driven by the retail trading frenzy on Bursa Malaysia, echoing the Gamestop shares movement in the United States (US).
Meanwhile, CGS-CIMB Securities Sdn Bhd analyst Ivy Ng Lee Fang said for the whole month of January, the KLCI fell 3.7 per cent month-on-month (m-o-m) as market sentiments were negatively impacted by the imposition of MCO 2.0, declaration of the state of emergency and the new Covid-19 cases which rose to a record of 5,725 on Jan 29.
“February has historically been a positive month, with the KLCI posting +0.4 per cent – +2.2 per cent m-o-m returns over the past years.
“We expect sentiment to improve when the government starts to roll out the COVID-19 vaccination programme, the increase in new cases ease and the earnings season turns out better than expected,” she said.
To recap, the MCO 2.0 which started out being implemented in only five states and three federal territories on January 13, have been expanded to the whole country except Sarawak.
For every week the MCO 2.0 is extended, it would cost the Malaysian economy an estimated RM4 billion to RM5 billion.
Meanwhile, the Asian stocks are mostly higher, with investors upbeat on US President Joe Biden’s meeting with the Republicans to discuss on the proposed economic aid.
Japan’s Nikkei 225 rose 0.97 per cent to 28,362.17, Hong Kong’s Hang Seng improved 1.23 per cent to 29,248.70 and China’s Shanghai Composite added 0.81 per cent to 3,533.68.
Locally, heavyweights Maybank went up five sen to RM7.86, Top Glove jumped 28 sen to RM7.02, Tenaga inched up one sen to RM9.66 while Public Bank slipped 11 sen to RM4.08.
Of the actives, Iris Corp lost four sen to 39.5 sen, EA Holdings up half-a-sen to three sen, Trive Property gained 4.5 sen to 20.5 sen and Metronic was flat at 10 sen.
On the index board, the FBM Emas Index appreciated 56.62 points to 11,420.43, the FBMT 100 Index went up 64.18 points to 11,169.11 and the FBM Emas Shariah Index was 131.10 points higher at 13,001.96.
The FBM 70 gained 13.03 points to 14,760.37, while the FBM ACE gave up 288.021 points to 10,744.92.
Sector-wise, the Financial Services Index dropped 71.09 points to 14,392.97, the Plantation Index increased 62.98 points to 7,160.87 and the Industrial Products and Services Index inched up 1.19 points to 170.38.
The Main Market volume slipped to 3.18 billion shares worth RM3.44 billion from 3.55 billion shares worth RM5.36 billion recorded on Friday.
Warrants turnover narrowed to 422.53 million units valued at RM79.26 million versus 594.50 million units valued at RM88.63 million.
Volume on the ACE Market decreased to 2.31 billion shares worth RM869.44 million vis-a-vis 2.39 billion shares worth RM921.86 million previously.
Consumer products and services accounted for 398.78 million shares traded on the Main Market, industrial products and services (1.14 billion), construction (180.55 million), technology (506.25 million), SPAC (nil), financial services (198.63 million), property (142.90 million), plantations (29.82 million), REITs (9.17 million), closed/fund (13,000), energy (281.92 million), healthcare (145.63 million), telecommunications and media (44.67 million), transportation and logistics (67.80 million), and utilities (32.29 million).
— Bernama
