Glovemakers drag KLCI lower

Glovemakers drag KLCI lower
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KUALA LUMPUR (Feb 19): The FBM KLCI reversed its gains and dipped 0.31% at mid-morning today, dragged by index-linked glovemakers.

At 10am, the FBM KLCI fell 4.83 points to 1,532.25. The index had earlier risen to a high of 1,539.90.

Losers led gainers by 252 to 231, while 303 counters traded unchanged. Volume was 591.33 million shares valued at RM375.41 million.

The top losers included Nestle (M) Bhd, Panasonic Manufacturing Malaysia Bhd, Top Glove Corp Bhd, Hartalega Holdings Bhd, United Malacca Bhd, Kuala Lumpur Kepong Bhd, MISC Bhd, Kossan Rubber Industries Bhd and Hong Leong Bank Bhd.

The actives included Sapura Energy Bhd, FoundPac Group Bhd, Bumi Armada Bhd, My EG Services Bhd, AirAsia Group Bhd, JAG Bhd and DGB Asia Bhd.

The gainers included Dutch Lady Milk Industries Bhd, Ajinomoto (M) Bhd, Carlsberg Brewery Malaysia Bhd, United Plantations Bhd, Allianz Malaysia Bhd, Hengyuan Refining Company Bhd, G3 Global Bhd, KKB Engineering Bhd and Vitrox Corp Bhd.

Reuters said Asian shares and US stock futures edged cautiously higher on Wednesday as investors tried to shake off worries about the coronavirus epidemic following a slight decline in the number of new cases.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.01%. Australian shares were up 0.14%, while Japan's Nikkei stock index rose 0.61%, it said.

Hong Leong IB Research said although Apple managed to rebound and closed at its intraday high, market participants will monitor and reassess the potential fallout of the Covid-19 incident as it has partially disrupted the supply chain amid factories shutdown in China as well as softer demand from the outbreak.

“Traders will monitor the upcoming reporting season in the US for further actions. The Dow’s trading range will be located around 28,500-30,000.

“Given the potential slowdown in Apple amid the ongoing Covid-19 outbreak, which affected the sentiment on technology sector globally, we believe technology sector may trade towards the downside over the near term with an expectation of potential slowdown in earnings moving forward.

“Based on the technical reading on FBM KLCI, the trading range will be located around 1,515-1,560. Traders may look out for high divvy stocks and solid fundamental companies with net cash position to sail through this current cloudy situation,” it said.