KLCI loses 0.77% as key heavyweights drag, Hartalega overtakes Tenaga in market cap

KLCI loses 0.77% as key heavyweights drag, Hartalega overtakes Tenaga in market cap
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KUALA LUMPUR (Oct 12): The main index at Bursa Malaysia remained in the negative zone at the midday break on Monday as key index heavyweights Malayan Banking Bhd (Maybank), Public Bank Bhd and Tenaga Nasional Bhd retreated, against the backdrop of firmer regional markets.

Hartalega Holdings Bhd became the fourth largest capitalised stock on Bursa Malaysia with RM59.85 billion when it overtook Tenaga, which has a market cap of RM58.42 billion.

At 12.30pm, the FBM KLCI fell 0.77% or 11.79 points to 1,518.56. The index had earlier fallen to a low of 1,512.75.

Losers led gainers by 349 to 299, while 687 counters traded unchanged. Trading volume was 3.63 billion shares valued at RM1.93 billion.

The top losers included Fraser & Neave Holdings Bhd, Nestle (M) Bhd, Public Bank, G3 Global Bhd, Atlan Holdings Bhd, Kuala Lumpur Kepong Bhd, Tenaga, QL Resources Bhd and Maybank.

The actively traded stocks included Advance Synergy Bhd, XOX Bhd, Parkson Holdings Bhd, JCY International Bhd, Nexgram Holdings Bhd, Kanger International Bhd and Bintai Kinden Corp Bhd.

The gainers included Pharmaniaga Bhd, Rubberex Corp Bhd, Supermax Corp Bhd, LPI Capital Bhd, Greatech Technology Bhd, Bintulu Port Holdings Bhd, Duopharma Biotech Bhd and KESM Industries Bhd.

Reuters said Chinese stocks led Asian markets higher on Monday as investors bet on a steady recovery for the world's no. 2 economy, though caution about the fate of US stimulus kept the US dollar firm and a central bank policy tweak unwound some of the yuan's gains.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8% to 2½-year highs, buoyed by a 2% gain in Chinese blue chips and a 1.5% rise by Hong Kong's Hang Seng index. Japan's Nikkei slipped 0.3% as investors fretted about corporate earnings, it said.

Hong Leong IB (HLIB) Research said following a bullish downtrend line breakout, KLCI is on course for a higher upside in the weeks ahead towards 1,537-1,563 zones, supported by bottoming up indicators.

However, it said after surging 30 points last week, profit-taking may emerge as elevated domestic political uncertainties (opposition leader Datuk Seri Anwar Ibrahim has been granted an audience with Agong on Oct 13) and more targeted lockdowns amid spiking Covid-19 local transmissions could pose downside economic risks.

“Sector-wise, major beneficiaries from the imminent third wave of Covid-19 in Malaysia are gloves, technology, telcos and couriers while sectors most vulnerable appeared to be aviation, retail, F&B, gaming, malls and hotels.

“On stocks selection, without a concrete vaccine timeline and compounded by an unabating rise in Covid-19 cases worldwide, appetite on glove stocks may be revived as lofty valuations came back to earth, supported by expectations of upcoming bullish quarterly results in November/December.

“HLIB’s current 'buy' ratings are Top Glove [Corp Bhd], Hartalega and Kossan [Rubber Industries Bhd],” it said.