KUALA LUMPUR (May 13): The FBM KLCI made marginal gains in early trade as index-linked glovemakers rose on higher global demand due to the coronavirus pandemic.

However, investor sentiment today will likely by weighed by the announcement of the first quarter 2020 gross domestic product (GDP) in the afternoon, and in tandem with the fall at regional markets, tracking the overnight slump at Wall Street.

Malaysia's economy is expected to have contracted for the first time in more than a decade in the first quarter (1Q) as the Covid-19 pandemic has wreaked havoc on private consumption and external demand. 

The median forecast from a poll of 21 economists was for GDP to decline 1% in January to March from a year earlier, the first contraction since the third quarter of 2009 during the global financial crisis.

At 9.05am, the FBM KLCI added 1.74 points to 1,381.67.

The early gainers included Top Glove Corp Bhd, United Plantations Bhd, Kossan Rubber Industries Bhd, PPB Group Bhd, Kuala Lumpur Kepong Bhd, Comfort Gloves Bhd, Hartalega Holdings Bhd, Careplus Group Bhd and MISC 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 U.S. equity futures following warnings on the fragility of the economic recovery.

Treasuries held on to gains, it said.

Rakuten Trade in its daily market report said Wall Street again experienced late session sell-down as traders decided to lock in profits realising that the impact of Covid-19 could be worse than anticipated.

“Euphoria over US opening of its economy has now turned cautious as many believe such a move could be premature.

“As such, we reckon regional markets to continue with their consolidation as per yesterday.

“We expect the FBM KLCI to see some selling pressure today and expect the benchmark index to possibly test the 1,370/75 levels,” it said.

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