KLCI recovers slightly on stronger regional performance

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KUALA LUMPUR (July 9): The FBM KLCI recovered slightly today in line with gains in regional markets, after falling to an 18-month low last Friday (July 6).

The benchmark index rose 8.77 points or 0.53% to close the day at 1,672.63, from 1,663.86 last Friday.

Reuters reported that Asian shares rose today as a result of a favourable US jobs report that "underscored the economy's strength, and China's efforts to attract more foreign capital and support its economy after US tariffs on Chinese imports came into effect on Friday".

Japan's Nikkei 225 was up 1.21% at 22,052.18, Hong Kong's Hang Seng index jumped 1.32% to 28,688.50 and South Korea's Kospi rose 0.57% to 2,285.80.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said that while the KLCI was up today, the number of counters in the red outpaced the gainers at 442 to 321.

"Volumes are still quite thin at 2.01 billion shares traded for RM2.05 billion. Generally trading is focused on blue chips today which kept the index fairly strong

"Regional markets, which were up today, also provided a positive backdrop to the market's performance today," he added.

The ringgit was also slightly stronger today at 4.0318 to the dollar from 4.04 last Friday, noted Pong.

Blue chips which rose included Axiata Group Bhd — up 5.7% to RM4.07, RHB Bank Bhd — up 3.5% to RM5.35, and Petronas Gas Bhd — up 1.5% to RM17.18.

Top Glove Corp Bhd was the top loser of the day, closing down 24.6% to RM9.13. On Friday, the group said it and its wholly-owned subsidiary Top Care Sdn Bhd had taken legal action against Adventa Capital Pte Ltd, as well as Low Chin Guan, Wong Chin Toh and ACPL Sdn Bhd, for alleged fraudulent misrepresentations pertaining to Top Glove's recent acquisition of Aspion Sdn Bhd from Adventa Capital.

Other glove makers were also among the top 10 losing counters, such as Kossan Rubber Industries Bhd, which was down 3.5% to RM8.20, and Supermax Corp Bhd, which was down 4.2% to RM4.29.

Sapura Energy Bhd was the most actively traded counter, closing up 1.65% to 61.5 sen and with 101.6 million shares changing hands. This follows a report by Bloomberg, quoting The Australian newspaper, that Sapura Energy is considering listing its oil and gas operations on the Australian stock exchange.