KUALA LUMPUR (Sept 10): The FBM KLCI dipped 0.94% at midday break today amid negative trading sentiment ahead of Bank Negara Malaysia (BNM)’s monetary policy meeting later in the afternoon, as index-linked glove makers led the losers list and the healthcare index fell 6.5%.

At 12.30pm, the FBM KLCI lost 14.13 points to its intra-morning low of 1,482.59.

Market breadth was negative with 602 losers and 157 gainers, while 649 counters traded unchanged. Trading volume was 4.68 billion shares valued at RM3.23 billion.

The top losers included Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd, Top Glove Corp Bhd, Comfort Gloves Bhd, Careplus Group Bhd, Panasonic Manufacturing Malaysia Bhd, Pharmaniaga Bhd, Heineken Malaysia Bhd and Carlsberg Brewery Malaysia Bhd.

The actively traded stocks included XOX Bhd, Top Glove, AT Systematization Bhd, Parlo Bhd, Destini Bhd, Supermax, Fintec Global Bhd and Permaju Industries Bhd.

The gainers included Kuala Lumpur Kepong Bhd, PPB Group Bhd, Time dotCom Bhd, Fraser & Neave Holdings Bhd, Sarawak Plantations Bhd, Maxis Bhd, QL Resources Bhd and MISC Bhd.  

Reuters said Asia's stock markets snapped their longest losing streak since February on Thursday and rose following a bounce on Wall Street, though subdued trade in currency, commodity and bond markets suggested investors remain cautious about the outlook.

MSCI's broadest index of Asia-Pacific shares outside Japan gained half a percent, lifting away from a one-month low made on Wednesday, it said.

Hong Leong IB Research said that ahead of the BNM meeting today (OPR decision will be known around 3pm), the KLCI could stage a technical rebound after skidding 121 points since hitting a year-to-date high of 1,618 on July 28, following the overnight rally on US major indices.

“However, any rebound may be capped near 1,507-1,525-1,556 zones in light of the domestic political uncertainty (with focus on the Sept 26 Sabah state election), fears of a potential resurgence of Covid-19 cases in Malaysia and global hotspots (especially during the fall/winter), escalating US-China geopolitical tension and ongoing Wall Street correction. Key supports are pegged at 1,476-1,461-1,413.

“On stock selection, HLIB Research reiterates a 'buy' rating on DRB-Hicom Bhd (TP: RM2.52, based on 25% discount to SOP RM3.35). 

“We remain positive on the stock as it continues to enjoy strong automotive sales growth, leveraging on SST exemptions, along with attractive model line-up from Proton, Honda and Mitsubishi,” it said.