Glove stocks pull down KLCI amid regional decline

Glove stocks pull down KLCI amid regional decline
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KUALA LUMPUR (Feb 22): The FBM KLCI closed lower, dragged by glove counters and in line with a regional decline that was induced by a sudden increase in the US 10-year Treasury yields.

The local benchmark index closed 0.91% or 14.47 points lower at 1,570.46. 

Rubber glove stocks came under selling in the wake of the arrival yesterday of the first batch of Covid-19 vaccines in Malaysia. 

Of the major glove players, Supermax Corp Bhd was down 4.66% or 27 sen at RM5.53, valuing the group at RM15.05 billion. 

Top Glove Corp Bhd declined 4.46% or 27 sen to RM5.78 for a market value of RM47.41 billion, and Hartalega Holdings Bhd closed 3.48% or 42 sen lower at RM11.64, valuing the group at RM38.9 billion.

Kossan Rubber Industries Bhd, however, managed to finish 1.01% or four sen higher at RM3.99, valuing the group at RM10.21 billion.

TA Securities Research said given the lack of firm trending indicators, the KLCI should trade sideways this week as the month draws to a close.

“However, the fresh buy signal on weekly stochastics shows promise for return to uptrend mode, especially if the resurgent buying momentum is sustained to encourage stronger retail participation in the lower liner and small cap space,” it said in a note.

On the broader market, decliners outnumbered gainers 704 to 427, with 558 counters closing unchanged.

Trading volume stood at 13.3 billion shares, with a total value of RM5.7 billion.

Active counters included Key Alliance Group Bhd, Nexgram Holdings Bhd and Velesto Energy Bhd. 

Top decliners were Malaysian Pacific Industries Bhd, ViTrox Corp Bhd and Tasco Bhd, while the top gainers were Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd and Malaysia Airports Holdings Bhd (MAHB). 

Elsewhere in Asia, Hong Kong’s Hang Seng Index was down 1.06% or 324.90 points at 30,319.83, while Shanghai’s Composite Index finished 1.45% or 53.72 points lower at 3,642.44.  Tokyo’s Nikkei 225 bucked the trend by closing 0.46% or 138.11 points higher at 30,156.03.

Reuters reported that regional equities were weaker today amid a spike in the US 10-year Treasury yields.

“Yields on the benchmark US 10-year Treasury notes rose to a one-year high as falling infection rates, expectations of a stronger economic recovery and higher government borrowings in the US dented their lustre,” it said.

S Kanagaraju