KLCI gains 0.35% as index-linked glove makers advance amid rising virus cases

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KUALA LUMPUR (July 2): The FBM KLCI gained 0.35% at mid-morning as index-linked glove makers continued to forge ahead on rising Covid-19 cases overseas, against the backdrop of modest uptrend at regional markets.

As at 10.05am, the FBM KLCI rose 5.45 points to 1,519.88.

Gainers led losers by 401 to 299, while 354 counters traded unchanged. Trading volume was 1.64 billion shares valued at RM1.07 billion.

The top gainers included Hartalega Holdings Bhd, Top Glove Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd and United Plantations Bhd.

The actives included AT Systematization Bhd, Vsolar Group Bhd, My EG Services Bhd, Hubline Bhd and Sapura Energy Bhd.

The decliners included Dutch Lady Milk Industries Bhd, Nestle (M) Bhd, Petronas Dagangan Bhd, Heineken Malaysia Bhd and Ken Holdings Bhd.

Bloomberg said Asian stocks saw modest gains today after positive vaccine developments and US data tempered concern over a jump in Covid-19 cases and tensions over Hong Kong.

Treasuries and the dollar held losses, it said.

Hong Leong IB Research said following a highly welcomed measure by Bursa/SC last Friday to prolong the short-selling suspension to Dec 31 and a positive close above 200D SMA supported by bottoming up indicators, KLCI is expected to advance further to retest the key 1,530 (long-term downtrend line drawn from 1,896 high) and 1,546 (38.2% FR) barriers.

"However, a pullback could ensue triggered by rising Covid-19 count globally, souring US-China relations, domestic political uncertainty with the focus on Parliament resitting on July 13 and deteriorating 2Q (second-quarter) corporate results," it said.