KLCI pushes further to rise 0.58% as glove makers and blue chips lift; regional markets tentative on dour US economic outlook

KLCI pushes further to rise 0.58% as glove makers and blue chips lift; regional markets tentative on dour US economic outlook
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KUALA LUMPUR (June 11): The FBM KLCI pushed further and rose 0.58% at mid-morning today as selected blue chips and index-linked glove makers advanced, against the backdrop of tentative regional markets on dour US economic outlook.

At 10am, the FBM KLCI rose 9.28 points to 1,584.55.

Gainers led losers by 470 to 322, while 366 counters traded unchanged. Trading volume was 2.78 billion shares valued at RM1.15 billion.

The gainers included Dutch Lady Milk Industries Bhd, Petronas Dagangan Bhd, Top Glove Corp Bhd, Hartalega Holdings Bhd and Kuala Lumpur Kepong Bhd.

The actives included AT Systematization Bhd, Pegasus Heights Bhd, Minetech Resources Bhd, My EG Services Bhd and Radiant Globaltech Bhd.

The decliners included Nestle (M) Bhd, Ayer Holdings Bhd, YNH Property Bhd, British American Tobacco (Malaysia) Bhd and RHB Bank Bhd.

Bloomberg said Asian stocks and US futures fell today after the US Federal Reserve painted a long road ahead to repair the economic damage from Covid-19, a contrast with the V-shaped recovery optimism that has propelled global equities.

Hong Leong IB Research said that in sync with recent pullback on Dow and the formation of a bearish shooting star pattern and grossly overbought indicators in KLCI, the index is likely to engage in short-term consolidation with optimism over reopening economies worldwide increasingly baked into share prices and stall further rally.

"For stock selections, traders should take profit on tourism-related stocks such as Genting Bhd, Genting Malaysia Bhd, AirAsia Group Bhd and Malaysia Airports Holdings Bhd amid imminent pullback due to grossly overbought readings," it said.