KLCI reverses gains as Hartalega and Public Bank drag, regional markets trade mixed

KLCI reverses gains as Hartalega and Public Bank drag, regional markets trade mixed
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KUALA LUMPUR (Aug 7): The FBM KLCI reversed its earlier gains and dipped in the mid-morning, dragged by losses — including at Hartalega Holdings Bhd and Public Bank Bhd — while regional markets were mixed.

At 10.05am, the KLCI was down 4.96 points at 1,583.61. The index earlier rose to a high of 1,591.08.

Losers led gainers by 505 to 376, while 366 counters traded unchanged. Trading volume was a robust 6.15 billion shares valued at RM2.39 billion.

The top losers included Nestle (Malaysia) Bhd, Hartalega, Adventa Bhd, Rubberex Corp (M) Bhd,  Public Bank, KESM Industries Bhd, Dutch Lady Milk Industries Bhd, Petronas Dagangan Bhd and Careplus Group Bhd.

The actively traded stocks included Borneo Oil Bhd, Pegasus Heights Bhd, Trive Property Group Bhd, Sanichi Technology Bhd and PDZ Holdings Bhd.

The gainers included UPA Corp Bhd, Notion VTec Bhd, Poh Kong Holdings Bhd, Ho Wah Genting Bhd and Kuala Lumpur Kepong Bhd (KLK).

Bloomberg said Asian stocks began the session today mixed as investors weighed hopes for an agreement on a stimulus package from Washington against continued US-China tensions.

Gold continued its surge, while Treasuries ticked higher, it said.

Hong Leong Investment Bank (HLIB) Research said despite the KLCI’s strong 39-point recovery from the 1,549 low after tumbling 69 points from a seven-month high of 1,618 (on July 28), it is likely to stay in extended range-bound consolidation mode for a while in the wake of ongoing domestic political uncertainties and the August reporting season, a resurgence of Covid-19 cases and intensified US-China geopolitical tensions.

“Only a successful breakout above rounding-top resistances at 1,591 (June 9) and 1,618 will lift the index to higher targets of the 1,655 (weekly upper BB) and 1,678 (200W SMA) levels,” it said.