BURSA Malaysia was lower at the opening bell in line with the continuing decline of global oil price, which currently trading at below US$30 per barrel.
At 9.05am, the key index FTSE Bursa Malaysia KLCI (FBM KLCI) lost 4.64% or 60.58 points to 1,242.70 while other indexes also opened in the red across the board.
On the broader market, losers trounced gainers 515 to 36, while 66 counters unchanged, 1,402 untraded and 17 others suspended.
Turnover amounted to 210.83 million shares worth RM91.45 mil .
At the time of writing, benchmark Brent crude was currently trading at US$28.15 per barrel, its lowest since 2003 after sliding almost three per cent overnight.
Brent has lost 66.16 per cent of its value year-to-date.
Malacca Securities in a note today said that as volatility resumes, the FBM KLCI is expected to reverse gains made last Friday with investors continue to grapple with global market volatility, tracking global indices performance especially Dow Jones Industrial Average.
“The FBM KLCI is expected to head back towards the 1,250 resistance level with the 1,210 support level. On the broader market, shares and the lower liners will experience more choppiness as traders will be quick to offload their position to avoid further volatility.
“With the negative sentiment likely to dominate the market amid the rising Covid-19 outbreak, we reckon that trading activities will be centred towards the healthcare sector,” it said.
The FBM KLCI had reached a 10-year low last week following the outflow due to oil price decline and worsening Covid-19 global situation.
Oil analyst said the decline in oil prices is expected to continue.
On the overall index, mid and small-sized cap experienced the heaviest losses followed by technology as well as construction.
On the heavyweight sector, all counters were in red with financial counters taking the lead.
Maybank declined 28 sen to RM7.23, CIMB Group skidded 38 sen to RM3.26 and Public Bank shed 62 sen to RM13.42.
All Petronas related counters also experienced heavy outflow as Petronas Chemicals dipped 25 sen to RM4.18, MISC down 20 sen to RM7.24, Petronas Gas lost 74 sen to RM14.94 and Petronas Dagangan reduced 90 sen to RM9.10.
Of the actives, Sapura Energy and Borneo Oil both declined half-a-sen to seven sen and 10 sen. l
On the index board, the FBM Emas Index contracted 436.54 points to 8,406.24, the FBM Emas Shariah Index narrowed 440.80 points to 9,223.34 and the FBM 70 gave up 586.10 points to 9,302.16.
The FBMT 100 Index erased 423.14 points to 8,357.15 and the FBM Ace depreciated 215.74 points to 3,303.38.
Sector-wise, the Industrial Products and Services Index inched down 5.34 points to 94.41, the Financial Services Index reduced 635.83 points to 11,185.68 and the Plantation Index was 279.24 points lower at 5,658.39. – march 23, 2020, Bernama
