KUALA LUMPUR (Aug 24): The FBM KLCI settled down 6.22 points or 0.39% at 1,570.90 during Bursa Malaysia's afternoon break today while the Healthcare Index rose as investors bought shares of pharmaceutical companies seen as frontrunners to secure the Malaysian government's contract to repackage and distribute the Covid-19 vaccine.

Share prices of Pharmaniaga Bhd and Duopharma Biotech Bhd settled up among Bursa top gainers against such sentiment.

The Healthcare Index, which tracks share prices of companies including rubber glove manufacturers and pharmaceutical firms, rose 82.74 points or 2.02% to 4,179.50 to become the leading percentage gainer among Bursa indices.

"Given the rapid comeback in rubber glove and healthcare-related stocks last week aided by increased worries over resurgent Covid-19 cases in global hotspots which would sustain the robust demand for healthcare products worldwide, these sectors should continue to outperform the market and crowd buying momentum in the immediate term," TA Securities Holdings Bhd analysts wrote in a note today.

"Moreover, strength in key index heavyweights in the rubber glove and pharmaceutical sectors should also offset the relatively weaker banks, gaming and other sectors adversely impacted by the virus pandemic to cushion downside on the index," they said.

Across Bursa at 12:30pm today, 5.62 billion shares were traded for RM3.07 billion.

Pharmaniaga's share price settled up 69 sen or 15.94% at RM5.02 while Duopharma rose 30 sen or 10% to RM3.30 as Asian shares advanced for a second straight session on Monday.

It was reported that Asian shares' advance was underpinned by coronavirus hopes after the US Food and Drug Administration (FDA) authorised the use of blood plasma from recovered patients as a treatment option.

"The announcement from the US FDA of a so-called 'emergency use authorization' came on the eve of the Republican National Convention, where US President Donald Trump will be nominated to lead his party for four more years. E-Mini futures for the S&P500 gained 0.3%," Reuters reported.