KLCI starts November on weaker note as manufacturing data shows slowdown

KUALA LUMPUR (Nov 2): The main index at Bursa Malaysia started November on a weaker note in line with regional markets, as manufacturing data output and new orders slowed to greater extents.

The headline IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) – a composite single-figure indicator of manufacturing performance – dipped for the fourth successive month in October, down to 48.5 from 49.0 in September.

At 9.05am, the FBM KLCI dipped 3.78 points to 1,462.11.

The early losers included Malaysian Pacific Industries Bhd, Greatec Technology Bhd, UWC Bhd, JF Technology Bhd, Supermax Corp Bhd, Carlsberg Brewery Malaysia Bhd, Pentamaster Corp Bhd, Lii Hen Industries Bhd, Top Glove Corp Bhd and Kossan Rubber Industries Bhd.

Reuterssaid Oil prices hit five-month lows and shares extended losses on Monday on worries about global demand as many economies slid back into coronavirus-induced lockdowns while upcoming U.S. presidential elections led to heightened caution.

Risk appetite has taken a hit in the past week on the back of rising coronavirus cases and lockdowns, fears of the prospect of a tightly contested U.S. presidential election, absence of a pre-election U.S. fiscal stimulus and gloomy corporate outlook, it said.

Kenanga Research said the key FBMKLCI was awash in a bloodbath last week, plummeting to as low as 1,461 before settling at 1,467 on Friday, which represents a weekly drop of 27.8 points or 1.9%.

“Technically speaking, the FBMKLCI could face negative momentum ahead after falling under the intermediate double-bottom pattern.

“We have positioned our key support and resistance levels for the benchmark index at 1,445 (S1) / 1,410 (S2) and 1,475 (R1) / 1,510 (R2), respectively,” it said.