KLCI claws back above 1,600 points, tracks regional gains

KLCI claws back above 1,600 points, tracks regional gains
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KUALA LUMPUR (Jan 5): The FBM KLCI finished 0.36% or 5.78 points higher today at 1,608.35, tracking the gains seen among other regional indices, as index-linked glove makers advanced.

The index earlier slipped to a low of 1,589.81.

Areca Capital Sdn Bhd chief executive officer (CEO) Danny Wong told theedgemarkets.com the recent increase in Covid 19 cases had dampened market sentiment, causing some cautious trading in the past two days after high expectations for the new year run.

“I think the market will be range-bound until it sees a strong catalyst to boost the sentiment,” he said, adding that strengthening Southeast Asian currencies may attract some funds back to the region.

Rakuten Trade Sdn Bhd research vice-president Vincent Lau also said the rebound of glove makers lifted the overall market sentiment today.

Overall, market breadth was still negative, with 676 counters ending the day in the red, versus 479 gainers and 429 that were unchanged.

A total of 6.25 billion securities were traded for RM4 billion, compared with a trading volume of 7.42 billion securities and a turnover of RM5.89 billion recorded yesterday.

Glove counters rose on bargain hunting after a heavy selldown yesterday. Supermax Corp Bhd rose 6.35% or 35 sen to RM5.86, Top Glove Corp Bhd gained 4% or 22 sen to RM5.72, and Hartalega Holdings Bhd climbed 1.15% or 12 sen to RM10.60.

Malaysian Pacific Industries Bhd (MPI), Carlsberg Brewery Malaysia Bhd and Allianz Malaysia Bhd were among the top losers today. MPI fell 50 sen or 1.96% to RM25, Carlsberg slipped 44 sen or 1.92% to RM22.46, and Allianz dropped by 32 sen or 2.18% to RM14.38.

Most regional markets rose today.

Reuters reported that South Korean shares ended at an all-time high as an upbeat outlook for the chip industry and hopes of an economic recovery offset uncertainty over the US Senate run-offs in Georgia. The benchmark KOSPI rose 1.57% to 2,990.57 points.

Chinese shares also extended their rallies as investors hoped for more measures to spur the country’s consumption amid the coronavirus outbreak. The Shanghai Composite Index closed 0.73% higher at 3,528.68 points, while the Shenzhen Component Index closed 2.16% higher at 15,147.57 points, it said.

Nikkei 225, however, fell 0.37% to 27,158.63 points as the government was said to declare a state of emergency to deal with rising Covid-19 cases.

Surin Murugiah