Glove selldown, national lockdown fears drag KLCI

Glove selldown, national lockdown fears drag KLCI
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KUALA LUMPUR (Oct 6): A selldown among index-linked glove stocks, mounting investor concerns over a second national lockdown and political uncertainty brought the FBM KLCI down by 0.2%.

At the closing bell, the local benchmark index was down 2.96 points at 1,509.47 points

According to Maybank Investment Bank remisier Jeffry Aziz, the sentiment in the local market is not positive at the moment given the rise in Covid-19 cases domestically, as well as fears over a second nationwide lockdown.

“Investors and traders are taking profit amongst the glove stocks as well. Importantly, the FBM KLCI is above the 1,500 support level,” he noted.

Declines seen in Top Glove Corp Bhd, Hartalega Holdings Bhd and IOI Corp Bhd dragged the index down.

Market breadth was also negative, with 704 counters posting declines vis-à-vis the 263 counters that registered gains and 514 counters that finished trading unchanged.

Trading volume stood at 6.03 billion shares, with today’s turnover at RM3.80 billion.

The decline seen today in the Malaysian equities market was not the case in regional markets. The Shanghai Composite Index was 0.20% or 6.31 points lower at 3,218.05 points, while its neighbour further south, the Hong Kong Hang Seng was up by 0.90% or 212.87 points at 23,980.65 points.

Japan’s Nikkei 225 was up by 0.52% or 121.59 points at 23,433.73 while South Korea's Kospi was up by 0.34% or 7.90 points at 2,365.90 points.

The rise in global equities came on the back of US President Donald Trump leaving the hospital, as well as indications of further economic stimulus from the world’s largest economy.

“Wall Street and most of Asia rallied overnight after Trump’s return from the Walter Reed Medical Center military hospital outside Washington eased nerves about possible disruption to next month’s presidential election," Reuters said.

Trump returned to the White House on Monday after a three-night hospital stay and said he felt “real good”, although one of his doctors cautioned that he may not be out of the woods until later in the week.

“US stimulus hopes were still bubbling in the background after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour and said they were preparing to talk again on Tuesday,” it reported.

Lam Jian Wyn