KLCI reverses loss, marginally higher as Genting, Hartalega lift

KLCI reverses loss, marginally higher as Genting, Hartalega lift
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KUALA LUMPUR (April 2): The FBM KLCI reversed its earlier loss and climbed marginally higher amid choppy trade at mid-morning today, lifted by index-linked Genting Bhd and Hartalega Holdings Bhd, against the backdrop of weaker regional markets rattled by the spectre of a looming global recession.

At 10.05am, the FBM KLCI was up 1.02 points to 1,323.68. The index had earlier slipped to a low of 1,316.94.

Gainers led losers by 305 to 208, while 226 counters traded unchanged. Trading volume was 720.54 million shares valued at RM397.14 million.

The top gainers include Heineken Malaysia Bhd, Sarawak Consolidated Industries Bhd, ViTrox Corp Bhd, Genting, Frontken Corp Bhd, Kumpulan Powernet Bhd, Hartalega and Dufu Technology Corp Bhd.

The actives included Minetech Resources Bhd, Hubline Bhd, Bumi Armada Bhd, Jaks Resources Bhd, Sapura Energy Bhd and KNM Group Bhd.

The decliners included Panasonic Manufacturing Malaysia Bhd, Dutch Lady Milk Industries Bhd, Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Petronas Dagangan Bhd, Kuala Lumpur Kepong Bhd, Ajinomoto (M) Bhd, PPB Group Bhd and Batu Kawan Bhd.

Reuters said Asian equities fell for a second session on Thursday, after a dire warning about the US coronavirus death toll had investors looking to the safety of dollars and bonds and bracing for more bad news from US jobless figures.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.2%. Japan's Nikkei extended Wednesday's heavy drop with a 1.5% fall, and investors are beginning to worry that equities may re-test last month's lows, it said.

Hong Leong IB Research said as the Dow has retraced after the recent sharp rebound (from the low of 18,213), investors may anticipate selling pressure to persist on the local exchange, limiting upside potential on the KLCI.

“It is advised that traders deploy 'Sell Into Strength' strategy over the near term as news flow related to Covid-19 in Europe and US, coupled with the rising recession fear (IMF mentioned that the world has entered a recession due to the coronavirus pandemic), will still dampen the sentiment globally,” it said