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Bursa opens at lowest level since Nov 2011, to test 1,450 support level

Bursa opens at lowest level since Nov 2011, to test 1,450 support level 1

PETALING JAYA: Bursa Malaysia opened today at its lowest level since November 2011, at 1,471.34 points. 11.3 points or 0.76% lower than its close of 1,482.64 points last Friday.

This followed a tumultuous week of political upheaval in the country (which continued into the weekend), more cases of Covid-19 being discovered as well as external shocks from the decline seen in US stock markets.

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In its daily note, Rakuten Trade Research said more volatility can be expected as sentiments have turned extremely cautious now.

“Treasuries are currently at record lows with the US 10- year yield now at 1.11% thus we would expect foreign funds to U-turn back to Asia seeking for safer havens with reasonable yields like Malaysia with its 10-yield hovering at 2.83%.

“As such, the ringgit is set to strengthen vis-à-vis the US dollar. Meanwhile the FBM KLCI is expected to test the 1,470 today after which the 1,450 would be the next support level,” it said.

At 11.20am, the benchmark index had fallen further by 1.36% to 1,462.52 points.

Across the board, sentiment was mostly negative with the small cap index leading the way, down 287.53 points to 12,448.49, followed by the financial services index down 255.1 points to 14,075.55, and the plantation index down 59.12 points to 6,750.62.

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