KLCI pares gains, stays up 1.4% in line with regional uptrend, select index-linked stocks lift

KLCI pares gains, stays up 1.4% in line with regional uptrend, select index-linked stocks lift
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KUALA LUMPUR (June 16): The FBM KLCI pared some of its gains at mid-morning but remained 1.43% up in line with regional uptrend, lifted by select index-linked stocks.

At 10am, the FBM KLCI was up 21.85 points to 1,520.68. The index had earlier risen to a high of 1,524.66.

Market breadth was positive with 758 gainers and 113 losers, while 207 counters traded unchanged. Trading volume was 2.05 billion shares valued at RM924.29 million.

The top gainers included Top Glove Corp Bhd, Supermax Corp Bhd, PPB Group Bhd, SAM Engineering & Equipment (M) Bhd, Panasonic Manufacturing Malaysia Bhd, Allianz Malaysia Bhd and Genting Plantations Bhd.

The actives included AT Systematization Bhd, Barakah Offshore Bhd, Compugates Holdings Bhd, Minetech Resources Bhd, TH Heavy Engineering Bhd and AirAsia Group Bhd.

The decliners included Imaspro Corp Bhd, Time Dotcom Bhd, Rapid Synergy Bhd and Kossan warrants.

Bloomberg said Asian stocks rebounded from their biggest decline since March and US futures climbed after the Federal Reserve — again — boosted investor sentiment in face of worries over a second wave of the coronavirus.

Hong Leong IB Research said after a 47-point rout yesterday, the KLCI is likely to stage a technical rebound today to reclaim the crucial 1,500-1,516 zones before revisiting the long-term downtrend resistance at 1,540, taking cue from a remarkable comeback by Dow overnight.

“Nevertheless, domestic uncertainties due to potential snap election in 2H20 and lifting of short-selling ban post June 30 may dampen sentiment and cap further rebound towards a formidable 1,580-1,600 territory.

“In wake of ongoing uncertainty, we advocate investors to stay prudent and accumulate companies backed by solid earnings and/or balance sheets.

“Meanwhile, despite their rich valuations, trading interests on glove makers may not fade away anytime soon until an effective cure or vaccine is found amid the resurgence in Covid-19 cases,” it said.