KLCI swings back above 1,500 level, lifted by glove makers

KLCI swings back above 1,500 level, lifted by glove makers
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KUALA LUMPUR (Sept 11): The FBM KLCI snapped two straight days of losses as glove stocks were back on the uptrend on bargain hunting.

The FBM KLCI closed 14.73 points or 0.99% higher at 1,504.85.

Index-linked glove makers Top Glove Corp Bhd and Hartalega Holdings Bhd were among the stocks that regained some of their lost ground.

Top Glove jumped RM1.31 or 20.31% to RM7.76 while Hartalega closed 56 sen or 4.71% higher at RM12.44.  

TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com that the KLCI’s performance was driven by the glove stocks’ rebound, noting that bargain hunters had returned to scoop the stocks following the selldown.

Soo said the glove makers and other healthcare-related stocks will remain in the radar next week.

In particular, he said Top Glove, the world’s largest glove maker by capacity, is expected to deliver strong quarterly earnings next week. Soo believes this would serve as a positive catalyst that will boost the KLCI.

“Key uptrend support for the KLCI is 1,505, followed by 1,553 and 1,564, while the immediate resistance is 1,474,” Soo added.

Bursa’s healthcare index closed up 9.15% to become the top percentage gainer among the exchange’s indices. It closed the session at 3,432.92.

Rubber glove manufacturers are constituents of  the healthcare index, along with hospital operators and pharmaceutical companies

On the broader market today, gainers outnumbered decliners by 701 to 296. A total of 7.66 billion shares worth RM6.49 billion were transacted.

Elsewhere in Asia, Japan's Nikkei 225 rose 0.74%, South Korea's Kospi inched up 0.01%, Hong Kong’s Hang Seng Index gained 0.78% and the Shanghai Stock Exchange Composite Index closed up 0.79%.

Most markets in Asia were reported to have resumed their downward path following another tech-led rout on Wall Street as investors fret over high valuations, while the failure of US lawmakers to reach agreement on a much-needed stimulus added to the gloom.

S Kanagaraju