KUALA LUMPUR,. Bursa Malaysia opened lower today, tracking the significant overnight losses on Wall Street, said an analyst.
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 7.63 points to 1,506.35 from 1,513.98 yesterday.
The benchmark index opened 6.50 points weaker at 1,507.48.
On the broader market, decliners outnumbered gainers 284 to 116, while 199 counters were unchanged, 1,678 untraded, and 21 others suspended.
Turnover stood at 220.14 million units worth RM163.42 million.
Malacca Securities Sdn Bhd said with the losses on Wall Street, an upside may be limited and the local market may remain volatile amidst concerns over the development surrounding the Covid-19 Omicron variant.
“Nevertheless, some investors may take advantage by adding positions into glove companies,” it said in its Market Pulse note today.
On oil prices, it said reports had shown a slower pace of supply increases from the Organisation of the Petroleum Exporting Countries and its allies (Opec+) in November, but noted that Opec+ is expecting a global oversupply of oil in the first quarter of 2022, leading to a decline in crude oil prices.
At the time of writing, Brent crude was down 3.91 per cent to US$70.57 (RM296.46) per barrel, while crude palm oil (CPO) price declined by nearly four per cent.
“Investors may look for opportunities in the December window dressing period. Meanwhile, glove stocks may be traded actively on the back of the Omicron variant concerns.
“Nevertheless, we believe that traders may take a step back from oil and gas and plantation stocks following the declining CPO and crude oil prices,” said the brokerage firm.
On the technical outlook, it said the support level is located at 1,500, and the next resistance level is pegged along 1,535-1,560.
Among the heavyweights, Maybank, Public Bank and Tenaga eased one sen each to RM7.97, RM3.93 and RM9.23, respectively, Petronas Chemicals fell six sen to RM8.44 and CIMB reduced 15 sen to RM5.03, while IHH was two sen higher at RM6.60.
Of the actives, BCM Alliance rose half-a-sen to 5.5 sen, ATA IMS eased two sen to 43 sen and XOX was flat at three sen.
On the index board, the FBM Emas Index narrowed 55.14 points to 11,028.64, the FBMT 100 Index contracted 51.11 points to 10,718.46, and the FBM Emas Shariah Index was 64.64 points lower at 12,063.98.
The FBM 70 lost 56.13 points to 14,385.49, while the FBM ACE added 2.75 points to 6,532.69.
Sector-wise, the Industrial Products and Services Index shed 0.71 of-a-point to 194.33, the Financial Services Index fell 64.48 points to 14,970.03, and the Plantation Index shed 27.69 points to 6,404.95. ― Bernama