KLCI slips as Hartalega and Top Glove dip, technology stocks advance on Nasdaq rally

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KUALA LUMPUR (Aug 4): The FBM KLCI reversed earlier gains and slipped in the mid-morning today as index-linked glove makers Hartalega Holdings Bhd and Top Glove Corp Bhd along with other select blue chips dipped, while technology stocks held on to gains following the overnight tech rally on Nasdaq.

At 10am, the KLCI had fallen 3.30 points to 1,569.31. The index earlier rose to a high of 1,580.72.

Losers led gainers by 401 to 398, while 365 counters traded unchanged. Trading volume was four billion shares valued at RM2.27 billion.

The decliners in the mid-morning included Nestle (Malaysia) Bhd, Hartalega, Top Glove, Dutch Lady Milk Industries Bhd, Kossan Rubber Industries Bhd, Carlsberg Brewery Malaysia Bhd and Hong Leong Bank Bhd.

The actively traded stocks included AT Systematization Bhd, Key Alliance Group Bhd, XOX Bhd, MQ Technology Bhd, Iris Corp Bhd, LKL International Bhd and Hubline Bhd.

The gainers included Malaysian Pacific Industries Bhd, Careplus Group Bhd, Adventa Bhd, HLT Global Bhd, Rubberex Corp (M) Bhd, ViTrox Corp Bhd, PPB Group Bhd, Pentamaster Corp Bhd and Notion VTec Bhd.

Bloomberg said Asian stocks opened higher today after a technology-fuelled rally in the US amid positive economic data and potential for further stimulus.

The US dollar held gains, it reported.

Hong Leong Investment Bank (HLIB) Research said as the impact of past stimulus measures faded and given some evidence that the global recovery had already stalled amid second-wave infection fears, coupled with the intensifying US-China geopolitical conflict, it remained to be seen what would help to keep global stock markets elevated in the coming weeks.

On the domestic scene, it said, lingering political uncertainty and expectations of worsening reported numbers for the second quarter of 2020 (2Q20 for both gross domestic product and corporate results) are the risks that could trigger further consolidation in August.

“Technically, weighing both directions, the KLCI is likely to exhibit more downside pressure than an upside following a sharp fall to below 1,591 (June 9 high) yesterday.

“We expect the KLCI to retest lower key support near 1,563 (July 17 low) before staging a technical rebound. Key resistances are situated in 1,591, 1,600 and 1,618 (July 29 high) territory,” it said.