KLCI down 0.88% on profit taking after Covid-19 vaccine-driven rise

KLCI down 0.88% on profit taking after Covid-19 vaccine-driven rise
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KUALA LUMPUR (Nov 11): The FBM KLCI settled down 13.91 points or 0.88% at 1,561.16 at Bursa Malaysia’s afternoon break today on profit taking after the index’s 50.75-point or 3.3% gain yesterday as Covid-19 vaccine optimism led to expectation of world economic recovery.

Across Bursa at 12:30pm today, 7.37 billion securities were traded for RM3.05 billion.

"While stocks should gain further ground on recovery optimism given potential for accelerated development of vaccines to restrict the adverse economic impact from the pandemic, the knee-jerk gains from recovery play should be prone to profit-taking as overbought momentum increases,” TA Securities Holdings Bhd analysts wrote in a note today.

From a global viewpoint, Reuters quoted National Australia Bank strategist Rodrigo Catril as writing in a note that a rotation theme remains evident in equity markets as investors took cue from Covid-19 vaccine development news.

"Big tech, which has benefited from our virus-driven change in behaviour, is now falling out of favour while small-cap stocks and those that have been most affected by social distancing restrictions have outperformed,” Catril said.

Meanwhile, Bernama reported that among heavyweights, Maybank fell six sen to RM7.60, Top Glove shed 14 sen to RM7.66, Tenaga lost 12 sen to RM11.08, Petronas Chemicals contracted 16 sen to RM6.59, while Hartalega reduced 18 sen to RM15.52. Public Bank, however, rose 10 sen to RM17.30.

On the index board, the FBM Emas Index was 65.96 points lower at 11,245.07, the FBMT 100 Index fell 72.38 points to 11,040.21, and the FBM Emas Shariah Index erased 87.51 points to 13,205.25.

Meanwhile, the FBM 70 gained 6.27 points to 14,555.36 and the FBM ACE surged 198.08 points to 11,244.44.

Sector-wise, the Industrial Products and Services Index slipped 1.68 points to 152.63, the Plantation Index lost 20.46 points to 7,187.13, and the Financial Services Index decreased 40.04 points to 13,247.46.