Thursday 28 Mar 2024
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KUALA LUMPUR (May 5): The FBM KLCI pared some of its gains at the midday break today, despite the firmer regional markets, as the local market was seen turning choppy due to external events and earnings risk.

At 12.30pm, the KLCI was up 0.74% or 10.17 points to 1,386.76. The index had earlier risen to a high of 1,391.31.

Gainers led losers by 608 to 201, while 324 counters traded unchanged. Trading volume was 3.2 billion shares.

Across Bursa Malaysia, all the indices were in the green, with the Energy Index rising the most by 3.74% to 724.42.

The top gainers included Dutch Lady Milk Industries Bhd, Ayer Holdings Bhd, Fraser & Neave Holdings Bhd, Petronas Dagangan Bhd, Public Bank Bhd, Hengyuan Refining Company Bhd, Petron Malaysia Refining & Marketing Bhd, and United Plantations Bhd.

The actives included Ageson Bhd, Velesto Energy Bhd, Hubline Bhd, Hibiscus Petroleum Bhd, Careplus Group Bhd and Bumi Armada Bhd.

The decliners included Batu Kawan Bhd, the DRB-Hicom Bhd warrant, FGV Holdings Bhd warrant, UPA Corp Bhd, Asia File Corp Bhd and Country Heights Holdings Bhd.  

Reuters reported that most Southeast Asian stock markets today clawed back some ground lost in the previous session as phased easing of Covid-19 restrictions by some countries and US states bolstered hopes of an economic recovery.

Sentiment was also aided by a firmer finish on Wall Street overnight as a rally in tech stocks eclipsed worries about simmering US-China tensions over the origin of Covid-19, it reported.

Meanwhile, CGS-CIMB Research has lowered its end-2020 KLCI target to 1,348 from 1,375 (based on 14.5 times price-earnings) previously.

In a strategy note yesterday, the research house downgraded its 2020 KLCI earnings forecast to -9.1% from -3.5% to reflect recent downgrades of MISC Bhd, Genting Bhd, Kuala Lumpur Kepong Bhd, Maxis Bhd and the consensus downgrade in CIMB Group Holdings Bhd earnings estimates.

“We now project 2021 KLCI earnings to grow 12.7% from 8.3% previously,” it said.

CGS-CIMB said the KLCI made strong gains in April, increasing 57 points or 4.2% month-on-month to close at 1,408 points, reflecting the relaxation of the movement control order (MCO).

However, it now expects the market to turn choppy in May due to potential external events and earnings risk.

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