July 2, 2021

PKPD Announcement Triggers Investor Anxiety

 Bursa Malaysia opened lower this morning after most investors were a bit nervous following the announcement of the enforcement of the Tightened Movement Control Order (PKPD) yesterday in most parts of Selangor and 15 localities in Kuala Lumpur.

At 9.10am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index slipped 0.06 points to 1,534.17 from 1,534.23 at the close of trading on Thursday.

The key index opened 0.53 points lower at 1,533.70.

On the broader market, losers outpaced gainers by 210 to 145 while 262 counters were unchanged, 1,548 untraded and 11 others suspended.

Turnover was 483.15 million units worth RM186.83 billion.

According to Malacca Securities, the implementation of the PKPD from tomorrow to July 16 due to the rising and continuing infection rate may affect investor sentiment.

Malaysia recorded 6,988 new COVID-19 cases with Selangor still recording the highest number.

Meanwhile, the price of crude palm oil (CPO) soared after India lowered its CPO import duty to 10%.

Meanwhile, Brent crude oil prices rose slightly after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) postponed their decision on oil production plans amid recovering oil demand, while market participants expected production to increase in moving forward.

"Therefore, the oil and gas sector may be active today as Brent oil prices have strengthened to around US $ 75 per barrel," he said.

As for overseas performance, the US stock market rose higher in overnight trading with the Dow adding 0.4%, boosted by strong Manufacturing Purchasing Managers' Index (PMI IHS Markit) data for the US in June at 62.1, the highest since May 2007.

IHS Markit noted the most significant decline among ASEAN countries was recorded by Malaysia, with the key index falling sharply to a low of almost 39.9 in June 2021 from 51.3 in May 2021.

Among heavyweights, Top Glove and TM fell six sen each to RM4.01 and RM6.08, respectively, while Hartalega declined nine sen to RM7.05, IOI Corp was two sen weaker at RM3.77 and RHB Bank was three sen lower. sen to RM5.38.

On the other hand, IHH rose seven sen to RM5.63 and Maybank increased two sen to RM8.13.

For active counters, Serba Dinamik gained one sen to 39 sen, Sarawak Consolidated rose seven sen to 82 sen and KPower added four sen to 94.5 sen.

On the index board, the FBM Emas Index declined 9.51 points to 11,163.84, the FBMT 100 Index declined 8.92 points to 10,877.56 and the FBM Emas Syariah Index declined 16.69 points to 12,170.11.

FBM ACE fell 26.85 points to 7,079.65 and FBM 70 weakened 45.30 points to 14,449.09.

By sector, the Financial Services Index rose 5.28 points to 15,135.41, the Industrial Products and Services Index fell 0.16 points to 186.44, and the Plantation Index rose 1.05 points to 6,446.14.