KLCI rises 1.97% on economic recovery plan and RMCO; glovemakers shine

KLCI rises 1.97% on economic recovery plan and RMCO; glovemakers shine
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KUALA LUMPUR (June 9): The FBM KLCI rose 1.97% at mid-morning amid positive vibes on the back of the nation's short-term economic recovery plan as well as the start of the Recovery Movement Control Order (RMCO), while glovemakers continued to shine.

At 10am, the FBM KLCI rose 31.29 points to 1,587.62.

Market breadth was positive as gainers led losers by 672 to 201, while 334 counters traded unchanged.

Trading volume was 2.6 billion shares valued at RM1.62 billion.

The top gainers included Nestle (M) Bhd, Petronas Dagangan Bhd, Hartalega Holdings Bhd, Top Glove Corp Bhd, Fraser & Neave Holdings Bhd, Supermax Corp Bhd and Hong Leong Financial Group Bhd.

The actives included Eduspec Holdings Bhd, AirAsia X Bhd, Sapura Energy Bhd, AirAsia Group Bhd, Bumi Armada Bhd, Hibiscus Petroleum Bhd, Velesto Energy Bhd and Careplus Group Bhd.

The decliners included Malaysia-listed Hang Seng Index-linked put warrants, MCOM Holdings Bhd, Acoustech Bhd and ViTrox Corp Bhd.

Bloomberg said Asian stocks opened mostly higher today, extending a global rally after their US peers pushed back into the green for the year as easing lockdowns bolstered economic optimism.

The dollar extended a decline, it said.

Hong Leong IB Research said after surpassing the key 200D SMA and Long Term downtrend line from 1896 in April 2018, the liquidity-driven bulls are in control to lift KLCI to 1600-1612 barriers, as investors clung to optimism for a gradual reopening of economies from the Covid-19 lockdowns and supported by the unprecedented fiscal and monetary stimulus as backstops.

"However, given the grossly overbought RSI and slow stochastic readings, the index (+28.9% from Covid-19 bottom 1,208) may undergo a healthy pullback with key supports situated at 1,492-1,534 levels," it said.