KUALA LUMPUR: The downtrend on the Malaysian stock market continued as investor sentiment remained weak amid the persistently high number of daily Covid-19 infections.

       Despite news that some states will be moving into Phase 2 of the National Recovery Plan, the extended MCO implemented in Selangor and Kuala Lumpur continued to weigh heavily on the economic outlook.

       Kenanga Research said the oversold condition on the market suggests little immediate downside risk although the descending trend continues to exert negative pressure on the FBM KLCI.

       "On balance, we reckon the FBMKLCI will probably fluctuate – with a marginal negative bias – between our revised first support and resistance thresholds of 1,510 (S1) and 1,550 (R1) for the time being.

       "Our next support and resistance lines are set at 1,475 (S2) and 1,600 (R2), respectively," said Kenanga.

       Among leading blue chips, Axiata fell seven sen to RM3.75, Sime Darby Plantation dropped four sen to RM3.94 and Hong Leong Bank slid 12 sen to RM18.70.

       Few counters were in positive territory, including Press Metal up five sen to RM4.83, Petronas Chemicals gaining three sen to RM8.10 and Genting Malaysia rising two sen to RM2.82.

       The most actively traded stock was Serba Dinamik , which surged 10 sen to 48.5 sen on the back of 864.09 million shares traded on news of the appointment of Ernst & Young as its independent reviewer.

       Warrants in the group also jumped 2.5 sen to 12 sen.

       Major Asian markets were in a bullish mood as the US Federal Reserve looks on course to extend its stimumus measures.

       However, Japan's Nikkei was down 0.5% on the back of a spate of Covid infections leading up to the Olympic Games.

       South Korea's Kospi rose 0.4% while China's main index gained 0.2% and Hong Kong's Hang Seng slid 0.45%.

       Australia's ASX200 added 0.1%.