KUALA LUMPUR (July 21): The FBM KLCI reversed its earlier loss and rose 0.54% in the mid-morning, lifted by select index-linked stocks, against a backdrop of modest gains in regional markets.
At 10am, the FBM KLCI was up 8.60 points to 1,598.05. The index earlier slipped to a low of 1,587.86.
Gainers led losers by 494 to 229, while 366 counters traded unchanged. Trading volume was 2.97 billion shares valued at RM1.23 billion.
The top gainers included Public Bank Bhd, Hartalega Holdings Bhd, Top Glove Corp Bhd, Bursa Malaysia Bhd, Petronas Dagangan Bhd, Dufu Technology Corp Bhd and Pentamaster Corp Bhd.
The actively traded stocks included Priceworth International Bhd, XOX Bhd, Lambo Group Bhd, Hubline Bhd, DGB Asia Bhd, Nexgram Holdings Bhd and JCY International Bhd.
The decliners included Supermax Corp Bhd, PPB Group Bhd, United Plantations Bhd, AEON Credit Service (M) Bhd, Keck Seng (Malaysia) Bhd, Sime Darby Bhd, Axis Real Estate Investment Trust (REIT), TAS Offshore Bhd and Poh Huat Resources Holdings Bhd.
Bloomberg said Asian stocks opened modestly higher after a technology-fuelled rally lifted their US counterparts to the highest since February.
The US dollar extended a decline to an almost six-week low, it said.
Hong Leong Investment Bank (HLIB) Research said escalating fears of a second wave of Covid-19 infection — which could worsen if a vaccine is not found before the winter — could continue to keep glove stocks in the limelight despite their rich valuations.
“With Top Glove and Hartalega collectively contributing about 12% of the FBM KLCI’s market capitalisation as at yesterday, volatility in their share prices will continue to influence the KLCI's short-term performance.
“Overall, current market consolidation mode would prevail and is healthy to neutralise overbought technical momentum for a more sustained uptrend going forward.
“Key resistances are near 1,600, 1,617 and 1,632 (upper BB), while supports fall on the 1,563 (last Friday's low), 1,545 (30-day simple moving average) and 1,530 (the LT downtrend line from 1,896) levels,” it said.