Friday 29 Mar 2024
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KUALA LUMPUR (May 12): The FBM KLCI ended up 4.88 points or 0.31% at 1,582.52 today, lifted by buying interest in healthcare and banking stocks as the spectre of rising Covid-19 infections and higher interest rates drove world equity sentiment.

Security trading on Bursa Malaysia ended at 12.30pm today in conjunction with a half-day trading session ahead of the Hari Raya Aidilfitri holidays tomorrow and Friday.

"Bursa and its subsidiaries will be closed on Thursday, May 13, 2021, and Friday, May 14, 2021, in conjunction with the Hari Raya Aidilfitri holidays. Bursa and its subsidiaries will resume operations on Monday, May 17, 2021,” Bursa said in a statement.

Today, Bursa’s Health Care Index, which tracks share prices of companies including rubber glove manufacturers and pharmaceutical firms, rose 1.65% to be the top percentage gainer among the bourse indices.

The Financial Services Index, meanwhile, rose 0.98%, a sentiment partly attributed to Public Bank Bhd’s share price gain today after the group reported yesterday that its first-quarter net profit climbed to RM1.53 billion from RM1.33 billion a year earlier.

“Public Bank’s results bring anticipation that the banking sector may not perform that badly. 

"[Across the Malaysian stock market,] there was also bargain hunting after two days of losses,” Areca Capital Sdn Bhd chief executive officer (CEO) Danny Wong told theedgemarkets.com today.

Across Bursa today, trading volume stood at 2.59 billion securities valued at RM1.92 billion. 

There were 582 gainers versus 361 decliners.

At a glance, banking stocks in Malaysia could have also gained following global news of interest rate hike expectations due to growing inflationary pressure.

In theory, while interest rate hikes bode well for banking shares, higher interest rates do not augur well for the broader stock market.

It was reported that an extended sell-off drove Asian shares to their lowest in seven weeks today as surging commodity prices and growing inflationary pressure in the US prompted markets to bet on earlier rate hikes and higher bond yields globally.

MSCI's broadest index of Asia-Pacific shares outside Japan slumped 1.5%, adding to yesterday's 1.6% loss, with all major indices under heavy selling pressure, Reuters reported.

Meanwhile, on Bursa today, the Health Care Index’s 1.65% rise was partly contributed by Pharmaniaga Bhd and Top Glove Corp Bhd’s share price gains.

Pharmaniaga’s share price closed up 42 sen or 10.88% at RM4.28, while Top Glove rose 17 sen or 3.28% to RM5.35.

Top Glove is also a member of the 30-stock KLCI.

Share prices of rubber glove manufacturers and pharmaceutical firms could have taken their cues from news of the rising number of newly-confirmed Covid-19 cases globally.

Malaysia reported yesterday 3,973 new cases, compared with 3,807 on Monday, according to updates in Health director-general Tan Sri Dr Noor Hisham Abdullah’s statements.

Globally, It was reported that India said today a record number of people were killed by the coronavirus in the past 24 hours, pushing its overall death toll to over a quarter million, while a leading virologist said it was too early to say if infections had reached a peak.

Deaths from Covid-19 swelled by 4,205, while daily coronavirus cases rose by 348,421, with India's overall number of cases surging past 23 million, according to health ministry data. Even then, experts believe the official numbers grossly underestimated the real scale of the epidemic's impact, and actual deaths and infections could have been five to 10 times higher, Reuters reported.

Edited ByChong Jin Hun
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