KLCI retraces gains on profit-taking, news of US crackdown on Supermax

KLCI retraces gains on profit-taking, news of US crackdown on Supermax
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KUALA LUMPUR (Oct 21): The FBM KLCI on Thursday retraced gains over the last three sessions on profit taking, with investor sentiment also hit by news of the US crackdown on glove maker Supermax Corp Bhd.

The benchmark index closed 14.7 points or 0.92% lower at 1,591.62, after moving between 1,590.34 and 1,608.92.

Rakuten Trade head of equity sales Vincent Lau said the market is likely to remain in a profit-taking mood ahead of the Budget 2022 announcement on Oct 29. 

He added that sentiment on glove counters such as Supermax and Top Glove Corporation Bhd has taken a beating as Supermax products were seized by the US Customs and Border Protection for allegedly using forced labour in manufacturing operations. 

Lau said banking and construction counters are going through a healthy pullback after rallying from their monthly lows over the last few trading sessions, but does not rule out a possible pre-Budget rally on expectations of an expansionary budget as the government seeks to boost economic recovery.

On the broader market, 3.85 billion shares worth RM3.46 billion were traded, compared with 4.3 billion shares worth RM3.11 billion on Wednesday. 

Market breadth continued to be negative as 771 decliners outnumbered 329 gainers with 415 counters unchanged.

The top gainers by value were Malaysian Pacific Industries Bhd, SKB Shutters Corporation Bhd and Nestle (Malaysia) Bhd, while the top losers were Hong Leong Financial Group Bhd, PMB Technology Bhd and Seni Jaya Corporation Bhd.

The day’s most actively-traded counter was Kanger International Bhd, which saw some 130.86 million shares traded.

S Kanagaraju