KLCI closes at near eight-month low on selling following lockdown extension

KLCI closes at near eight-month low on selling following lockdown extension
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KUALA LUMPUR (June 28): The FBM KLCI closed 0.96% lower after lingering in negative territory for the entire session on broad-based selling as investors weighed the impact of further extension of the full lockdown.

The benchmark index dropped 14.97 points to 1,544.71, its lowest level since Nov 9, 2020. It opened 2.22 points lower at 1,557.46 and dropped to as low as 1,539.60.

The broader market was also down with 975 counters closing lower against 133 gainers, while 343 stocks closed unchanged. Some 4.73 billion shares worth RM2.38 billion were traded.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the extension of the current movement control order (MCO 3.0) had affected investor sentiment, resulting in the heavy selldown.

“The lockdown extension has sparked concern that the economic recovery may stall for even longer,” he said when contacted.

Leong, however, expects the KLCI to rebound going forward against the backdrop of the new stimulus package announced by Prime Minister Tan Sri Muhyiddin Yassin after the market closed.

The RM150 billion “PEMULIH” package includes the government's direct fiscal injection of RM10 billion.

Index-linked counters that fell today were led by Top Glove Corp Bhd (down 2.76% or 12 sen at RM4.23), Sime Darby Bhd (down 2.74% or six sen at RM2.13) and Sime Darby Plantation Bhd (down 11 sen or 2.63% at RM4.08).

The top active counters included Serba Dinamik Holdings Bhd, Fintec Global Bhd, Dagang NeXchange Bhd (DNeX), Boustead Holdings Bhd, PUC Bhd, KPower Bhd, Privasia Technology Bhd, Sarawak Consolidated Industries Bhd (SCIB) and Xidelang Holdings Ltd.

Top gainers in value were Cheetah Holdings Bhd, Genetec Technology Bhd, Chin Teck Plantations Bhd, Dutch Lady Milk Industries Bhd, Malaysian Pacific Industries Bhd (MPI), Dufu Technology Corp Bhd, Petronas Chemicals Group Bhd (PetChem) and Greatech Technology Bhd  

Meanwhile, Nestlé (Malaysia) Bhd was the top loser, falling 70 sen or 0.52% to RM13. This was followed by Petronas Dagangan Bhd (PetDag), which fell 50 sen or 2.55% to RM19.10.

Other notable losers were Kuala Lumpur Kepong Bhd (KLK), Hartalega Holdings Bhd, British American Tobacco (Malaysia) Bhd and Heineken Malaysia Bhd.

Key Asian markets closed lower, with Japan's Nikkei 225 dropping 0.06%, South Korea's KOSPI down 0.03%, Hong Kong's Hang Seng Index dropping 0.07% and the Shanghai Composite down 0.03%.

S Kanagaraju