KLCI remains in the red as glove makers and Tenaga drag

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KUALA LUMPUR (Jan 29): The FBM KLCI remained in the red in early trade Wednesday, dragged by select index-linked blue chips including glove makers Top Glove Corp Bhd and Hartalega Holdings Bhd as well as Tenaga Nasional Bhd.  

At 9.05am, the FBM KLCI dipped 1.56 points to 1,550.08.

The top losers included Petronas Dagangan Bhd, Genting Plantations Bhd, PPB Group Bhd, Tenaga Nasional Bhd, Hartalega Holdings Bhd, Icon Offshore Bhd, MISC Bhd and Top Glove Corp Bhd.

Bloomberg said Asian stocks looked set to follow U.S. shares and Treasury yields higher, amid efforts to contain the coronavirus and more signs of improvement in the American economy.

Futures rose in Japan and Australia. Hong Kong will reopen after a holiday though flights remain limited from China amid an attempt to stop the deadly virus spreading. The S&P 500 added 1% as technology shares climbed and traders digested positive U.S. consumer confidence and home price data. Apple Inc. rose in after-hours trading after its sales forecast topped estimates. The offshore yuan strengthened, it said.

JF Apex Securities Research said US markets rallied overnight in a rebound led by technology and financial counters such as Apple and Goldman Sachs amid lingering concerns over the Wuhan coronavirus and quarterly earnings.

It said that similarly, European stocks rebounded amid the coronavirus outbreak, Brexit deadline on Friday and corporate results.

“On the local market, the FBM KLCI plunged 21.17 points to 1551.64 points.

“Following the positive performances in the US and Europe, the FBM KLCI could follow suit and stage a rebound after bouncing off the support of 1550 points,” it said.