Blue chips fell more than 40 points early Monday when the stock market resumed trading after Pakatan Harapan's shocking victory in last Wednesday's defining 14th General Election.
The KLCI fell 40 points at the start but managed to reduce its losses as local funds stepped in to pick up oversold counters due to the knee-jerk reaction.
At 9.09am, the KLCI was down 24.69 points or 1.34% to 1,821.82. Turnover was 449.98 million shares valued at RM453.39 million. There were 232 gainers, 331 losers and 140 counters unchanged.
However, at 9.29am, the KLCI was up 12.13 points to 1,859.64. Turnover was 1.08 billion shares valued at RM1 billion. There were 388 gainers, 358 losers and 163 counters unchanged.
Analysts believe that there could be some profit taking and buying support throughout the first day of trading after the market closed for two days after Pakatan Harapan swept to power in a shocking win in the 14th General Election last Wednesday.
Kenanga Research said despite short-term concerns over the government's fiscal position should the Goods and Services Tax be abolished; it is hopeful that the victory of the people will enhance the prospects of Malaysia by strengthening key government institutions over the long-run.
“We maintain our FY18E/FY19E earnings growth estimates for KLCI at +6.1%/+6.0%. We also maintain our end-2018 index target of 1,950.
“As such, despite a potential but limited downside after the Bursa was closed for three trading days, any weaknesses are considered good buying opportunities,” it said.
At press time, Public Bank rose 72 sen to RM24.60 with 1.84 million shares done.
Nestle was the top gainer, up RM4.60 to RM140.20, BAT jumped RM3.30 to RM26 and F&N RM1.12 to RM35.62 while Dutch Lady gained 70 sen to RM67.50.
PPB Group surged RM1.54 to RM20.70 while Sapura Energy jumped 19.5 sen to 86.5 sen with 180 million shares done.
Opcom, hit limit-up, gaining 30 sen to 90.5 sen and Edge added 10.5 sen to 27.5 sen.
CIMB recovered from early selling pressure to edge up one sen to RM6.91 in active trade.
George Kent, however, hit limit down, falling RM1.18 to RM2.76, Gamuda lost 78 sen to RM4.32, MyEG was down 77 sen to RM1.81 and Prestariang lost 36 sen to RM1.29.