KLCI rises 0.88% as index-linked glovemakers lift, broader market tepid ahead of GDP announcement

KLCI rises 0.88% as index-linked glovemakers lift, broader market tepid ahead of GDP announcement
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KUALA LUMPUR (May 13): The FBM KLCI rose 0.88% at mid-morning, lifted by gains at index-linked glovemakers, against the backdrop of a cautious broader market and tepid regional bourses ahead of the announcement of the first quarter 2020 gross domestic product (GDP) in the afternoon.

At 10.06am, the FBM KLCI rose 12.22 points to 1,392.15.

Broader market sentiment stayed cautious with 446 losers and 259 gainers, while 293 counters traded unchanged. Trading volume was 2.71 billion shares valued at RM1.25 billion.

The top gainers included Top Glove Corp Bhd, Hartalega Holdings Bhd, United Plantations Bhd, Kossan Rubber Industries Bhd, Supermax Corp Bhd, Comfort Gloves Bhd, PPB Group Bhd and Careplus Group Bhd.

The actives included HLT Global Bhd, Key Alliance Group Bhd, Careplus, UCrest Bhd, LKL International Bhd and mTouche Technology Bhd.

The decliners included Panasonic Manufacturing Malaysia Bhd, Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Tenaga Nasional Bhd, Nestle (M) Bhd, Petronas Dagangan Bhd, Petron Malaysia Refining & Marketing Bhd and Genting Plantations Bhd.

Bloomberg said the risk-off sentiment that’s crept back into global markets took hold further on Wednesday as Asian stocks opened lower with US equity futures following warnings on the fragility of the economic recovery.

Treasuries held on to gains, it said.

Hong Leong IB Research said following a 14.4% relief rally from its low of 1,208 (March 19), KLCI could experience some degree of profit taking, ahead of the 1Q20 GDP release today and expectations of a tepid 1Q20 results season coupled with concerns over a potential no-confidence motion against the Prime Minister on May 18 or the next Parliament sitting on July 13-29.

“We expect more range bound consolidation within the 1,350-1,400 band,” it said.