KLCI claws back to positive zone; MQ Tech in spotlight on bid for glove maker Latexx

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KUALA LUMPUR (June 22): The FBM KLCI clawed back into positive territory at the midday break amid some choppy trade, while MQ Technology Bhd (MQ Tech) hogged the limelight in the morning session today, becoming the new proxy for the rubber glove stock rally.

In a bourse filing last Friday in response to a news report published by The New Straits Times that MQ Tech was a front runner, alongside Top Glove Corp Bhd, to acquire Latexx Partners, the loss-making company said it had the intention to acquire the glove manufacturer.

At 12.30pm, the KLCI had gained 1.59 points to 1,508.85. The index earlier slipped to a low of 1,502.64.

Losers led gainers by 304 to 300, while 630 counters traded unchanged. Trading volume was 3.38 billion shares valued at RM1.7 billion.

The gainers included BLD Plantation Bhd, Nestle (Malaysia) Bhd, Supermax Corp Bhd, Telekom Malaysia Bhd (TM), Top Glove, Dutch Lady Milk Industries Bhd and Comfort Gloves Bhd.

The actives included MQ Tech, Key Alliance Group Bhd, Minetech Resources Bhd, Green Packet Bhd, Permaju Industries Bhd, Iris Corp Bhd and mTouche Technology Bhd.

The decliners included Allianz Malaysia Bhd, QL Resources Bhd, British American Tobacco (Malaysia) Bhd, Fraser & Neave Holdings Bhd, LPI Capital Bhd, Oriental Holdings Bhd, BIMB Holdings Bhd, G3 Global Bhd and Batu Kawan Bhd.

Reuters said US stock futures erased losses and Asian stocks held flat today, trying to shake off worries that rising Covid-19 cases in the US could scupper a quick economic rebound from the massive downturn triggered by the pandemic.

US S&P 500 futures rose 0.4%, having erased early losses of 1.05%, while Japan's Nikkei also eked out gains of 0.1%, similarly recovering from early losses, it said.

Kenanga Research said that last Friday, Asian stock markets ended mostly higher in spite of rising concerns surrounding the possibility of a second wave of Covid-19 infections.

It said back home, the KLCI rose 2.35 points (+0.16%) to finish at 1,507.26.

“Following the formation of a 'golden cross', the index managed to close the gap that was opened during the mid-March market meltdown, which sees it now trading above all of its key SMAs (simple moving averages).

“On the chart, our support levels are identified at 1,450 (S1) and 1,410 (S2).

“On the upside, our resistance levels are at 1,530 (R1) and 1,590 (R2),” it said.