Tuesday, May 12, 2020 FBMKLCI: 1, 382 .31 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* WWeeeekkllyy SSttrraatteeggyy Market View, News in Brief: Corporate, Economy, and Share Buybacks Kaladher Govindan Tel: +603-2167 9609
[email protected] www.taonline.com.my Market View FBMKLCI to Drift Lower on Sustained Selling Pressure The local blue -chip benchmark FT SE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) whipsawed between profit-taking and bargain hunting interest last week. Profit-taking post month-end window-dressing due to the US-China spat over the origin of the virus outbreak was offset by a strong rebound in global oil prices on hopes production cuts and reopening of major economies as virus lockdowns ease will boost demand recovery. Nonetheless, a late session selldown mid-week by foreign funds after oil prices fell on oversupply worries with US weekly crude stockpiles rising more than expected dampened market sentiment ahead of another extended three-day weekend break. Week-on-week, the FBM KLCI slumped 25.47 points, or 1.81 percent to 1,382.31, with losses on Nestle (-RM1.90), Public Bank (-64sen), Petronas Gas (-54sen), Kuala Lumpur Kepong (-40sen) and Hong Leong Finance (-28sen) accounting for most of the losses. Average daily traded volume and value last week stayed strong at 5.45 billion shares and RM2.67 billion, compared to the 5.22 billion shares and RM2.64 billion average the previous week, with active retail participation in small caps and low-priced penny stocks continuing to dominate daily trading activities. Selling pressure in Bursa Malaysia stocks is expected to sustain this week.