KLCI closes lower for fourth straight day, dragged down by Top Glove and Hartalega

KLCI closes lower for fourth straight day, dragged down by Top Glove and Hartalega
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KUALA LUMPUR (June 26): The FBM KLCI marched into its fourth consecutive trading day of losses, bucking the trend of its regional peers, amid falls in key index-linked stocks like Top Glove Corp Bhd and Hartalega Holdings Bhd.  

The benchmark index closed 1.06 points or 0.07% lower at 1,488.14, after moving between 1,483.05 and 1,495.57.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the weak market sentiment was partly due to the World Bank’s downgrading of Malaysia’s economic growth for this year to -3.1% from -0.1% estimated in April.

He told theedgemarkets.com that the short-selling ban, which is expected to be lifted on July 1, has also caused investors to take a more cautious approach as they expect the market to experience more volatility ahead.

Today’s major losers were Top Glove (down 3.87% or 60 sen at RM14.9) and Hartalega (down 1.32% or 16 sen at RM11.94). 

Leong said the fall in rubber glove counters was due to rumours that a windfall tax will be imposed on the sector, as the glove industry is one of the very few sectors that benefited significantly from the Covid-19 pandemic.

Overall, market breadth was negative with 551 losers and 307 gainers, while 503 counters traded unchanged. Volume was 4.73 billion shares valued at RM2.38 billion.

Across Asia, Japan's Nikkei 225 rose 1.13% and South Korea's Kospi grew 1.05%. In China, the Hong Kong Hang Seng Index fell 0.93% while the Shanghai Stock Exchange Composite Index closed up 0.3%. 

Reuters reported that Asian stock markets closed higher today, and were set to end a choppy week more or less where they began as surging coronavirus infections cast a shadow over encouraging economic data and checked hopes for a swift global recovery.