KLCI slumps 1.93% as fear of second wave of coronavirus rattles markets, glovemakers drag

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KUALA LUMPUR (June 15): The FBM KLCI slumped 1.93% at the midday break, tracking the fall at regional markets as fears of a second wave of coronavirus infections rattled markets.

At 12.30pm, the FBM KLCI fell 29.87 points to 1,516.15.

Market breadth was negative with 604 losers and 128 gainers, while 588 counters traded unchanged. Trading volume was 4.92 billion shares valued at RM2.38 billion.

The top losers included Top Glove Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd, Hong Leong Financial Group Bhd, Hap Seng Consolidated Bhd, Hartalega Holdings Bhd, Petronas Dagangan Bhd, Hong Leong Bank Bhd, Petronas Chemicals Group Bhd and Heineken Malaysia Bhd.

The actives included Pegasus Heights Bhd, Minetech Resources Bhd, AT Systematization Bhd, ConnectCounty Holdings Bhd and iStone Group Bhd.

The gainers included Dutch Lady Milk Industries Bhd, Tenaga Nasional Bhd, Batu Kawan Bhd, Asia File Corp Bhd, Fraser & Neave Holdings Bhd and Malaysian Pacific Industries Bhd.

Reuters said Asian shares stumbled on Monday and oil prices slipped as fears of a second wave of coronavirus infections in Beijing sent investors scurrying for safe-havens while underwhelming data from China further weighed on sentiment.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3% with Australian shares off 0.1% and South Korea easing 0.3%. Japan's Nikkei faltered 0.7%, it said.

Kenanga Research said that last Friday, Asian stocks ended mostly lower, as investors took a cue from Wall Street’s overnight losses following the fears of a “second wave” of coronavirus outbreak.

It said back home, the FBM KLCI slipped 11.23 points, or 0.72%, to finish at 1,546.02.

“Following the formation of a 'Golden Cross', the index managed to close the gap that was opened during the mid-March market meltdown, which sees it now trading above all of its key-SMAs.

“On the chart, our resistance-turned-support levels are identified at 1,530 (S1) and 1,500 (S2).

“On the upside, our resistance levels are at 1,570 (R1) and 1,600 (R2),” it said.