KLCI rises 0.79% as index-linked glove makers advance strongly

KLCI rises 0.79% as index-linked glove makers advance strongly
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KUALA LUMPUR (July 16): The FBM KLCI rose 0.79% in the mid-morning today as index-linked glove makers advanced strongly against a backdrop of mixed regional markets.

At 10.05am, the KLCI was 12.73 points higher at 1,598.29.

Gainers led losers by 401 to 272, while 395 counters traded unchanged. Trading volume was 3.85 billion shares valued at RM1.34 billion.

The top gainers included Top Glove Corp Bhd, Supermax Corp Bhd, Hartalega Holdings Bhd, Supermax-C99, Nestle (Malaysia) Bhd, Supermax-C83, Supermax-C77, Bursa Malaysia Bhd, Pentamaster Corp Bhd and Supermax-C78.

Among the glove makers, Top Glove rose RM1.22 to RM23.02, Supermax was 56 sen higher at RM15.62, while Hartalega added 52 sen to RM16.12.

The actively traded stocks included Pegasus Heights Bhd, NetX Holdings Bhd, XOX Bhd, Lambo Group Bhd, MQ Technology Bhd, Hubline Bhd and PDZ Holdings Bhd.

The decliners included Carlsberg Brewery Malaysia Bhd, Dutch Lady Milk Industries Bhd, Heineken Malaysia Bhd, British American Tobacco (Malaysia) Bhd, Kuala Lumpur Kepong Bhd (KLK) and Petronas Dagangan Bhd.

Reuters said Asian shares looked set to continue a march upwards as optimism about a Covid-19 vaccine carried weight over the ongoing spread of the disease and simmering US-China tensions.

Australian S&P/ASX 200 futures rose 0.37% in early trading. Japan's Nikkei 225 futures added 0.07%, while Hong Kong's Hang Seng Index futures rose 0.25%, it reported.

Hong Leong Investment Bank (HLIB) Research said the KLCI is likely to witness short-term consolidation amid overbought daily and weekly slow stochastic readings after rallying 141 points or 9.6% to a six-month high of 1,617 on Tuesday from a low of 1,476 on June 29, compounded by a profit-taking pullback for index-linked Top Glove and Hartalega due to vaccine optimism and stricter measures imposed by investment banks to curb excessive speculation on overheated glove stocks.

“Key supports are near 1,578-1,563-1,541, while resistances are situated at the 1,600-1,617-1,633 levels,” it said.