KLCI ends 1.89% higher as rubber glove counters back in vogue

KLCI ends 1.89% higher as rubber glove counters back in vogue
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KUALA LUMPUR (Jan 8): The FBM KLCI finished 30.24 points or 1.89% higher at 1,633.19 as glove stocks frenzy lifted the market amid growing fears of another lockdown, given the rising domestic coronavirus cases.

The index slipped to a low of 1,595.12 points earlier in the day.

JF Apex research head Lee Chung Cheng told theedgemarkets.com the FBM KLCI is expected to trade sideways next week amid the fear of another round of Movement Control Order.

"Today there were some buying interests in glove stocks. The gloves' frenzy is coming back again.

"People are speculating there will be another lockdown, so the market sentiment went back to the previous stage, when there was a thematic play on gloves," he said.

However, across Bursa Malaysia the market breadth was negative, with 1,040 counters ending the day lower, versus 353 gainers and 283 that were unchanged.

Meanwhile, 10.03 billion securities were traded for RM7.16 billion, compared to 6.51 billion securities worth RM5.03 billion yesterday.

Of the KLCI constituents, gainers were led by glove makers. Top Glove Corp Bhd rallied 70 sen or 12.07% to RM6.50, Supermax Corp Bhd surged RM1.25 or 20.66% to RM7.30, while Hartalega Holdings Bhd soared RM1.60 or 14.68% to RM12.50.

Overall, the Health Care index was up 3.87% to 3627.79 points.

Among the declining KLCI constituent stocks were Petronas Gas Bhd (down 20 sen or 1.17% to RM16.90) and Petronas Dagangan Bhd (down 16 sen or 0.75% to RM21.14).

Most Asian stock markets ended higher on Friday on hopes for more US fiscal stimulus after congress confirmed Joe Biden as president.

The sentiment was also lifted by US markets which rose overnight with all three major indexes hitting record highs.

Reuters reported South Korean shares surged 3.97% to a record high of 3,152.18 on Friday and posted the sharpest weekly gain in over 12 years, boosted by a surge in Samsung Electronics and Hyundai Motor and on massive foreign buying.

It also reported Japanese shares ended 2.36% firmer at 28,139.03, closing at the highest since August 1990, with raw materials and technology shares leading the gains.

Surin Murugiah