KLCI up 0.56% in line with regional gains, Supermax and Kossan rise on inclusion in MSCI Global Standard Indexes

KLCI up 0.56% in line with regional gains, Supermax and Kossan rise on inclusion in MSCI Global Standard Indexes
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KUALA LUMPUR (Aug 13): The FBM KLCI rose 0.56% in the mid-morning, in line with regional gains, while shares in Kossan Rubber Industries Bhd and Supermax Corp Bhd rose after the duo were scheduled to be added as constituents of the MSCI Global Standard Indexes, which will take place at the close on Aug 31.

At 10am, the KLCI was up 8.71 points at 1,565.35.

Gainers led losers by 575 to 253, while 349 counters traded unchanged. Trading volume was 3.47 billion shares valued at RM1.44 billion.

The gainers included Supermax that rose 94 sen to RM19.82 and Kossan which gained 40 sen to RM15.50.

Other gainers included Top Glove Corp Bhd, Fraser & Neave Holdings Bhd (F&N), Hartalega Holdings Bhd, Rubberex Corp (M) Bhd and SAM Engineering & Equipment (M) Bhd.

The actively traded stocks included Pegasus Heights Bhd, Priceworth International Bhd, Lambo Group Bhd, RGB International Bhd, Sapura Energy Bhd, Borneo Oil Bhd, Vsolar Group Bhd, Trive Property Group Bhd, i-Stone Group Bhd and Hubline Bhd.  

The decliners included Nestle (Malaysia) Bhd, Duopharma Biotech Bhd, Can-One Bhd, Tien Wah Press Holdings Bhd, PPB Group Bhd, Vstecs Bhd, CSC Steel Holdings Bhd and Tropicana Corp Bhd.

Bloomberg said Asian stocks gained today after US peers briefly surpassed their all-time closing high, led by surging technology shares.

The US dollar weakened and Treasury yields traded at five-week highs, it said.

Hong Leong Investment Bank (HLIB) Research said following Bursa’s recent heavy and irrational trading volume (five-day average daily volume at 22 billion shares), broader market sentiment is likely to remain sluggish in the near term to consolidate and neutralise the excessive overbought condition, particularly on ACE Market-listed shares, penny stocks and lower-liners.

“However, we reckon that rotational sectoral buying (e.g. energy, financial services, healthcare, technology, etc) will continue to attract robust retail participation and keep trading volume buoyant.

“We may witness a mild KLCI technical rebound today following the Wall Street rally and rising oil prices overnight but the general trend for the KLCI is still trapped in a sideways band in wake of domestic political uncertainties, a weak August reporting season and intensified US-China geopolitical tension.

“Key supports are situated at 1,511-1,539, while resistances fall on the 1,580-1,591-1,600 levels,” it said.