KUALA LUMPUR (June 4): The FBM KLCI closed up 23.31 points or 1.52% today at its intraday high after a spike in the final trading minutes, partly helped by sharp gains in prices of index-linked counters Hap Seng Consolidated Bhd and Nestle (M) Bhd.
Rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd were also among stocks contributing to the KLCI’s rise.
At 5pm, the KLCI finished higher at 1,561.84 points. Bursa Malaysia’s healthcare index, which includes rubber glove manufacturers, closed up 5.85% to be the largest percentage gainer among Bursa indices.
The KLCI closed higher for the seventh consecutive day today.
Across Bursa, 8.19 billion securities worth RM6.12 billion were traded. There were 634 gainers and 389 decliners.
Hap Seng Consolidated’s share price closed up RM1.30 or 15.66% at RM9.60, while Nestle rose RM1.10 or 0.79% to RM140.40.
Top Glove's share price closed up 74 sen or 5.03% at RM15.44, while Hartalega ended 56 sen or 4.99% higher at RM11.78, as share prices of rubber glove manufacturers rebounded after falling earlier.
Rubber glove manufacturers’ share prices had earlier fallen on news stockbroking firms have tightened their share margin financing standards for shares in rubber glove manufacturers, following the recent rise in their stock prices on expectation that the Covid-19 pandemic will lead to higher demand for rubber gloves.
TA Securities Holdings Bhd technical analyst Stephen Soo told theedgemarkets.com that investment sentiment remains strong among rubber glove makers, following their share price rebound today.
“Going forward, there will be some rotational play going on from the rubber glove sector, into the banking and gaming sectors. On the chart, our (KLCI) support levels stand at 1,517 and 1,539, while our resistance levels are 1,575, 1,600 (and) 1,620,” Soo said.
Globally, it was reported that the rapid rally in world markets finally paused for breath on Thursday, as traders waited to hear how much more stimulus the European Central Bank (ECB) plans to shovel out to address the coronavirus slump.
It was reported that the ECB is expected to pump in another 250-500 billion euros for the cause, but after weeks of sharp gains for stocks, oil and confidence-sensitive currencies, investors were taking the chance to lock in some profit.
"Asian stocks stalled at a two-month high; London, Frankfurt, Paris and Brent dipped; and the euro, pound and Aussie dollar all wilted, as the U.S. dollar snapped out of week-long run of falls,” Reuters reported.
In Malaysia tomorrow (June 5), investors will closely follow Prime Minister Tan Sri Muhyiddin Yassin’s announcement at 3pm on the nation's short-term economic recovery plan for the June to December 2020 period.
On Tuesday (June 2), Bernama, quoting Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, reported that the plan would still focus on three key objectives, namely to empower people, propel businesses and stimulate the economy.