KLCI dips 0.53% as political imbroglio grips nation

KLCI dips 0.53% as political imbroglio grips nation
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KUALA LUMPUR (Aug 16): The FBM KLCI dipped 0.53%  in early trade as the investing community awaits with bated breath as to the outcome of the political imbroglio gripping the nation.

As the market opened, Prime Minister Tan Sri Muhyiddin arrived at  Perdana Putra to attend the special Cabinet meeting.

Yesterday, news portal Malaysiakini reported that Muhyiddin will resign today after losing his majority owing to infighting among the ruling coalition.

At 9.01am, the FBM KLCI fell 8.03 points to 1,497.08.

The early decliners included Genetec Technology Bhd, Kuala Lumpur Kepong Bhd, Petronas Gas Bhd, Malaysia Airports Holdings Bhd, Hartalega Holdings Bhd and Fraser & Neave Holdings Bhd.

Reuters said Asian share markets made a cautious start to the week on Monday ahead of a raft of Chinese data that could confirm a slowdown in the giant economy, as much of the world races to stem the spread of the Delta variant of COVID-19 with vaccinations.

Figures on retail sales, industrial production and urban investment are forecast to show a modest pullback in activity in China in July, a trend likely to be worsened by the recent tightening in coronavirus restrictions, it said.

Inter-Pacific Research Sdn Bhd said the growing political uncertainties, coupled with the unabating pandemic conditions, will continue to weigh on the near-term market sentiments.

In its daily bulletin today, the research house said that as such, the cautious market environment is likely to prevail for longer with market players also adopting a wait-and-see attitude that could leave stocks to drift again.

It said under the prevailing environment, the downside pressure could also intensify with market players trimming their short-term positions, while fresh buying is likely to remain thin for the time being.

“The uncertainties also mean that the 1,500 level is again under threat and if it gives way, the 1,490 level is the next support.

“On the flipside, the hurdles remain at 1,510 and 1,520 points respectively,” it said.