KLCI rises 0.82% as index-linked glove makers lift

KLCI rises 0.82% as index-linked glove makers lift
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KUALA LUMPUR (Nov 20): The main index at Bursa Malaysia rose 0.82% at the midday break today, as index-linked glove makers lifted the local bourse despite wobbly global markets.

At 12.30pm, the FBM KLCI rose 13.04 points to 1,596.72. The index had earlier in the morning slipped to a low of 1,579.49.

Gainers led losers by 423 to 256, while 841 counters traded unchanged. Trading volume was 4.84 billion shares valued at RM2.75 billion.

The gainers included Nestle (M) Bhd, Supermax Corp Bhd, Hartalega Holdings Bhd, Top Glove Corp Bhd, Petron Malaysia Refining & Marketing Bhd, Malaysian Pacific Industries Bhd, Petronas Gas Bhd, Mr DIY Group (M) Bhd, Euro Holdings Bhd and Comfort Gloves Bhd.

The actively traded stocks included AT Systematization Bhd, Southern Cable Group Bhd, NetX Holdings Bhd, Pasukhas Group Bhd, Metronic Global Bhd, Samaiden Group Bhd, Key Alliance Group Bhd and Kanger International Bhd.

The decliners included Hong Leong Financial Group Bhd, Pharmaniaga Bhd, Vivocom International Holdings Bhd, Tenaga Nasional Bhd, Genetec Technology Bhd and YNH Property Bhd.

Reuters said world financial markets were hit by a wave of uncertainty on Friday after US Treasury Secretary Steven Mnuchin called for an end to coronavirus pandemic relief for struggling businesses, sparking a rare clash between the central bank and Treasury.

S&P500 futures slipped 0.7% while Dow futures fell 0.8%, cancelling out a firmer lead from a strong Wall Street session overnight, it said.

Hong Leong IB Research said the local bourse is ripe for further profit taking consolidation after rallying from a low of 1,452 to a high of 1,613, on the back of the lingering concerns about a fragile global economic outlook due to the surging Covid-19 infections and new lockdowns, expectations of weaker 4Q20 economy and corporate earnings in Malaysia (post-CMCO 2.0), ongoing 3Q20 results season, and the Budget 2021 approval (expected to be held on Nov 26).

“Key supports are pegged at 1,576-1,555-1,535 levels whilst resistances are situated near 1,600-1,618-1,633 levels,” it said.