BURSA Malaysia started its trading this month sharply lower, in tandem with Wall Street’s weak performance on Friday.

At 9.05am, key index FTSE Bursa Malaysia KLCI fell 29.35 points, or 2.09%, to 1,378.43 from Friday’s close of 1,407.78.

Market breadth is negative with losers thumping gainers 486 to 75, while 202 counters are unchanged, 1,106 untraded and 17 suspended.

Turnover stands at 419.38 million shares worth RM181.48 million.

Market sentiment is affected by the resumption of the US-China trade war, with President Donald Trump renewing his rhetoric last week, accusing Beijing of doing little to stop the spread of Covid-19 and threatening more tariffs on Chinese exports to the US.

AxiTrade global chief market strategist Stephen Innes, in a note today, said the trade spat will be detrimental to oil prices over the long term.

“Still, with demand devastation plumbing the depths, any signs of a rebalancing, either through economic reopenings or additional forced or agreed-on supply cuts, should ultimately be viewed supportive for oil prices at current levels.

“But with investor sentiment wobbling out of the gates today as risk rises in the east, oil traders will likely be tentative to build up that bullish muster in exceptionally low liquidity to challenge the bears this morning, although oil fundamentals are on firmer ground.”

International benchmark Brent declined 2.72% to US$25.72 (RM112) per barrel.

Bursa heavyweight Maybank is down 20 sen to RM7.37, Tenaga Nasional Bhd (12 sen to RM12.12) Public Bank (30 sen to RM16.08), IHH Healthcare (14 sen to RM5.11), Petronas Chemicals (16 sen to RM5.44) and Maxis (8 sen to RM5.40).

The Financial Services Index slipped 232.67 points to 12,240.24, Industrial Products and Services Index (2.42 points to 118.02) and Plantation Index (142.93 points to 6,218.09). – Bernama, May 4, 2020.