KUALA LUMPUR: The ongoing political volatility with Prime Minister Tan Sri Muhyiddin Yassin expected to tender his resignation on Monday pushed the local stock market deeper into the red.
At 9.26am, the FBM KLCI was down 10.64 points or 0.71% to 1,494.47. Turnover was 893.81 million shares valued at RM343.94mil. The broader market was weaker with five decliners to one advancer or 596 losers to 108 gainers and 269 counters unchanged.
Reuters reported the ringgit fell about 0.1% to 4.2410 against the US dollar, the lowest since July 2020.
Bloomberg reported US equity futures and most Asian stocks slipped Monday as the delta virus strain hampers economic reopening and as traders await key Chinese data that may signal slower growth.
Shares fell in Japan on escalating Covid-19 infections and a stronger yen. Equities in China and Hong Kong fluctuated. S&P 500 and Nasdaq 100 contracts retreated after a drop in US consumer sentiment to a near-decade low injected some caution, depressing Treasury yields and the dollar.
China’s retail sales and industrial output numbers may show growth slowed in July following flooding and mobility curbs to fight a virus outbreak.
On the local front, The Star Online reported that before the special Cabinet meeting at 10am, Muhyiddin is expected to meet with top government officials including Chief Secretary to the Government Tan Sri Mohammad Zuki Ali.
He will then meet with his Cabinet members, before heading to the Istana Negara.
The Pagoh MP has an audience scheduled for 11.30am with Yang di-Pertuan Agong where he is expected to formally announce his resignation as prime minister to the King.
Rakuten Trade said this political volatility may create more uncertainties in the market over the immediate term as it reckons sellers to emerge.
"Therefore, we believe the FBMKLCI to potentially test the year’s low of 1,490 today. Though bargain hunting is expected to appear, we see the index to trend lower
at around the 1,485-1,500 range today as sentiments becomes jittery," it said.
At Bursa, tech stocks were mixed as Genetec fell 54 sen to RM26.72 on profit taking after several weeks of rally, KESM losy 36 sen to RM12, SAM Engineering 24 sen to RM14.06 and Pentamaster 18 sen to RM5.47. MPI rose 42 sen to RM44.40 and Greatech five sen to RM7.20.
As for KLCI stocks, Nestle fell RM1 to RM132.30, KL Kepong 50 sen to RM19.68, Hartalega 14 sen to RM6.99, Petronas Gas and HLFG 12 sen each to RM15.78 and RM17.06.
Khind rose 11 sen to RM3.08, Perstima 10 sen to Rm3.93, LPI eight sen to RM14 and Westports five sen to RM4.15.
AVI was the most active, surging7.5 sen to 26.5 sen while DNeX lost 3.5 sen to 75 sen.