Bursa falls as Fed chair comments spark selling in equities

KUALA LUMPUR: Bursa Malaysia erased its previous session’s gains and slid even lower as investors pulled out of equities following the US Federal Reserve chair’s comments that the central bank could speed up the tapering of bond-buying in December.

Overnight, Wall Street indices were dragged lower on the prospect that the timetable for the tapering could be pushed forward by a several months.

The Dow Jones Industrial Average and S&P500 skidded 1.9% each while the Nasdaq was down 1.6%.

At 9.05am, the FBM KLCI was down 7.63 points to 1,506.35, foiling attempts to recover from the sell-off triggered by the discovery of a new Covid-19 variant in several countries last week.

Amid the volatility, glove counters remained on investors’ radar screen as investors speculated that the spread of the Omicron strain of Covid virus could help lift demand for personal protective equipment.

Top Glove, sliding one sen to RM2.82, was the fourth most active counter on Bursa Malaysia with 35.1 million stocks traded.

Supermax was the sixth most active stock, with 15.69 million units crossed, dropping three sen to RM1.91.

Hartalega meanwhile was also down one sen to RM6.48 while Kossan Rubber Industries inched five sen higher to RM2.20.

In earnings plays, CIMB was down 13 sen to RM5.04 following a disappointing performance announced on Bursa Malaysia yesterday.

RHB was also down two sen to RM5.26 after rising slightly yesterday on its earnings performance.

Other banks’ share prices included Hong Leong Bank up eight sen to RM18.16, Maybank unchanged at RM7.98 and Public Bank unchanged at RM3.94.

In telcos, Maxis was also seeing strong selling pressure, dropping 16 sen to RM4.52. Axiata climbed three sne to RM3.93 and Digi dipped three sen to RM4.14.

Meanwhile, top active stocks on Bursa Malaysia were Kanger unchanged at 3.5 sen, ATA IMS down 1.5 sen to 43.5 sen and BCM Alliance flat at five sen.

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