KLCI reverses gains as Public Bank leads decline, index hovers above 1,600-level

KLCI reverses gains as Public Bank leads decline, index hovers above 1,600-level
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KUALA LUMPUR (July 14): The FBM KLCI reversed its earlier gains and retreated in the mid-morning, in line with mixed regional markets as Public Bank Bhd led the decline, while managing to hold on to the 1,600-point threshold.

At 10am, the KLCI was down 4.05 points to 1,602.38. The index earlier risen to a high of 1,608.84 in early trade.

Decliners led advancers by 488 to 245, while 366 counters traded unchanged. Trading volume was 2.22 billion shares valued at RM1.74 billion.

Top losers included Public Bank, Kuala Lumpur Kepong Bhd (KLK), MISC Bhd, Ajinomoto (Malaysia) Bhd, Hong Leong Bank Bhd and UWC Bhd.

Actively traded stocks included PDZ Holdings Bhd, Vivocom Intl Holdings Bhd, Hubline Bhd, Careplus Group Bhd, Sanichi Technology Bhd, Anzo Holdings Bhd, Land & General Bhd and DGB Asia Bhd.

Gainers included Supermax Corp Bhd, Supermax-C78, Supermax-C80, Kossan Rubber Industries Bhd, Supermax-C87, Supermax-C85, Top Glove Corp Bhd, Supermax-C89 and Supermax-C86.

Reuters said Asian shares were showing a mixed picture today after a volatile day in US equity markets amid persistent concerns over a record number of new Covid-19 cases worldwide and signs of an economic rebound.

Australian S&P/ASX 200 futures lost 0.76% in early trading, Japan's Nikkei 225 futures added 0.22%, and Hong Kong's Hang Seng Index futures rose 0.39%, it reported.

Hong Leong Investment Bank (HLIB) Research said in sync with a sluggish performance on Wall Street overnight due to the resurgence of Covid-19 and the reintroduction of containment measures, coupled with rising US-China geopolitical tensions after Washington rejecting Beijing’s claims in the South China Sea, the KLCI is expected to face some selling pressure amid overbought daily and weekly slow stochastic readings after rallying 130 points in the last 11 trading sessions (from a low of 1,476 on June 29).

“However, downside risk may be cushioned by active buying interest in benchmark glove stocks amid the virus resurgence.

“Key supports are near 1,572/1,561, while resistances fall in 1,617/1,626 zones,” it said.