KUALA LUMPUR (Aug 25): The FBM KLCI continued to close lower today by 13.62 points or 0.87% mainly due to profit-taking activities seen across glove makers.

At 5pm, FBM KLCI closed at 1,555.96 points. In today’s session, it was only trading in the red zone between the range of 1,552.92 and 1,569.58 points.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that glove stocks retreated “quite badly” due to reports that the US may fast-track an experimental Covid-19 vaccine from the UK.

“Overall, the other stocks, including the small caps, in the market also follow the sentiment from the glove [counters],” he added.

“The market performance is not looking too healthy,” Wan said, adding that the benchmark index performance would be dependent on how corporate earnings results will pan out in the next three to four days.

Noting that the immediate support level is 1,550 points, Wan said “it will definitely look more precarious if it does fall below 1,550”.

Among the 30 constituents, glove makers were the biggest losers. Top Glove Corp Bhd declined RM2.50 or 8.96% to close at RM25.40, followed by Hartalega Holdings Bhd, which was RM1 or 5.71% lower at RM16.50.

On Bursa Malaysia, other glove makers joined the list of top losers. Supermax Corp Bhd was down RM2.30 or 10.41%, Kossan Rubber Industries Bhd slid RM1.30 or 8.16% to RM14.64. The same list was also flooded by Supermax’s warrants.

Meanwhile, Comfort Gloves Bhd fell 12.66%, Careplus Group Bhd dropped by 11.32%, and Rubberex Corp (M) Bhd slid 9.69%.

Today, Bursa Malaysia saw 10.22 billion shares worth RM7.63 billion traded. Losers led gainers by 843 to 323, while 344 counters remained unchanged.

Across Asia, Japan's Nikkei 225 grew 1.35% and South Korea's Kospi climbed 1.58%, while Hong Kong’s Hang Seng was down 0.26%.

Reuters reported that European shares opened higher on Tuesday, with market sentiment propped up by the US and China saying they are still committed to their Phase One trade deal, and some increased optimism around Covid-19 vaccine development.

Top US and Chinese officials had a phone call in which they reaffirmed their commitment to the Phase One trade deal agreed in January, in a positive sign after months of disputes over the Covid-19 pandemic, China’s national security law and Chinese technology firms, the newswire added.

The news lifted Asian currencies and stocks, with the Chinese yuan firming slightly overnight.

As at the time of writing, the ringgit strengthened against the US dollar at 4.1695 — nearly a six-month high.

Edited by Lam Jian Wyn