KLCI starts September on firmer footing as manufacturing output stabilises in August

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KUALA LUMPUR (Sept 1): The FBM KLCI started the first trading day of September on firmer footing as Malaysian manufacturing production stabilised in August, sustaining the recovery from the coronavirus disease 2019 (COVID-19) downturn.

According to IHS Markit, although new orders continued to soften, the pace of moderation remained much weaker than the series nadir in April.

At 9.05am, the benchmark index was up 7.86 to 1,533.07.

The early gainers included Malaysian Pacific Industries Bhd, Kossan Rubber Industries Bhd, Hong Leong Financial Group Bhd, Fraser & Neave Holdings Bhd, Top Glove Corp Bhd, Hong Leong Bank Bhd and PPB Group Bhd.

Bloomberg said Asian stocks drifted lower at the start of a new month after most U.S. equities retreated even though technology shares extended gains.

Rakuten Trade Sdn Bhd in its daily market report said Wall Street closed mixed after stock splits of Apple and Tesla.

It said the Dow Jones Industrial Average was down marginally 223 points at the 28,430 level and while S&P 500 ended flat at 3,500 level.

It said the Nasdaq briefly touched 12,000 to close on another record high.

“Regional markets are expected to be in the same breath as yesterday.

“On the local front, we expect the FBM KLCI to stage a technical rebound from last week’s sell-down.

It said the inclusion of Supermax Corp Bhd and Kossan into MSCI Index may see renewed buying interest of glove counters that may provide support to the FBM KLCI in the likes of TopGlove and Hartalega.

“Hence, we reckon there will be trading opportunities with the focus on small mid cap stocks and thematic stocks such as AHB Holdings in our investment idea today,” it said.