KUALA LUMPUR (Feb 4): The main index of Bursa Malaysia reversed its gains and slipped before the midday break today, in line with weaker regional markets, as glove makers retreated.

At 12.30pm, the FBM KLCI had dropped four points to 1,578.99. The index earlier rose to a high of 1,586.55.

Gainers edged losers by 379 to 345, while 714 counters traded unchanged. Trading volume was 4.05 billion shares valued at RM2.17 billion.

The decliners included Top Glove Corp Bhd, Frontken Corp Bhd, Pentamaster Corp Bhd, Mi Technovation Bhd, Dufu Technology Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd, AEON Credit Service (M) Bhd and Kuala Lumpur Kepong Bhd (KLK).

The actively traded stocks included Lambo Group Bhd, Luster Industries Bhd, PA Consolidated Bhd, KNM Group Bhd, Dagang NeXchange Bhd (DNeX), PNE PCB Bhd, Sanichi Technology Bhd, AirAsia X Bhd and AbleGroup Bhd.

The gainers included Malaysian Pacific Industries Bhd, See Hup Consolidated Bhd, Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd, Khind Holdings Bhd, Petronas Dagangan Bhd (PetDag) and Genetec Technology Bhd.

Reuters said Asian shares dipped today as tight liquidity conditions in China curbed buying for now, though improving corporate earnings, expectations of large US stimulus and a subsiding retail frenzy all supported risk sentiment.

US bond prices extended their decline, with the 30-year yield hitting its highest level since March, following stronger economic data and a push in Washington to pass a massive relief plan, it said.

Hong Leong Investment Bank (HLIB) Research said pending further details of the movement control order (MCO) extension to Feb 18, the KLCI is likely to trend sideways, with bargain-hunting activities on recovery stocks within the banking, oil and gas (O&G), telecommunications, auto and technology sectors.

“However, the index could face some stiff resistance near 1,600-1,618 amid elevated Covid-19 infections and the start of the February reporting season.

“Given the potential for volatility, a balanced portfolio remains appropriate.

“Hence, we would adopt a more balanced approach in our top picks with a combination of recovery plays, volatility, defensives, value and sold-down pandemic beneficiaries,” it said.