KUALA LUMPUR (Aug 17): The FBM KLCI reversed its earlier gains and retreated 0.31% at the midday break today as glovemakers fell on speculation about a windfall tax and a contra trade ban on glove counters, against the backdrop of firmer regional bourses, led by the Chinese markets.

At 12.30pm, the FBM KLCI was down 4.81 points to 1,559.78. The index had earlier risen to a high of 1,567.55.

Losers led gainers by 339 to 371, while 667 counters traded unchanged. Trading volume was a brisk 5.09 billion securities valued at RM3.03 billion.

The top losers included Top Glove Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Malaysian Pacific Industries Bhd, Rubberex Corp Bhd, Ayer Holdings Bhd, Time Dotcom Bhd, Comfort Gloves Bhd and Adventa Bhd.

The actively traded stocks included Iris Corp Bhd, XOX Bhd, Sapura Energy Bhd, Lambo Group Bhd, Notion VTec Bhd, Borneo Oil Bhd, Pegasus Heights Bhd, Nexgram Holdings Bhd and Trive Property Group Bhd.

The gainers included Nestle (M) Bhd, Hong Leong Financial Group Bhd, PPB Group Bhd, Teck Guan Perdana Bhd, Panasonic Manufacturing Malaysia Bhd, Milux Corp Bhd and Fraser & Neave Holdings Bhd.

Reuters said Asian shares firmed towards recent peaks on Monday as Chinese markets swung higher, while investors waited to see if the recent sell-off in longer-dated US Treasuries would extend and maybe take some pressure off the beleaguered US dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.5% to 565.74, moving nearer to the January top of 574.52, it said.

Hong Leong IB Research said this week, the KLCI is expected to continue its range-bound consolidation amid domestic political uncertainty, a weak August reporting season, the increasing numbers of new Covid-19 clusters and the detection of virus mutation D614G, which is 10 times more infectious, in Malaysia and intensified US-China geopolitical tension.

It said key supports are situated at 1,511-1,539 whilst resistances are pegged at 1,584-1,591-1,600 levels.

“Sentiment wise, overall market breadth to remain subdued amid the heavy losses on the FBMACE (-6.9% week-on-week) and FBMSCAP (-4.6% week-on-week) indices coupled with waning average daily value of RM6.7 billion (-24.7% week-on-week).

“We expect extended consolidation on penny stocks, ACE and small caps to consolidate and neutralize the excessive overbought conditions,” it said.