KLCI stays above 1,500 with support of glove makers

KLCI stays above 1,500 with support of glove makers
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KUALA LUMPUR (June 19): The FBM KLCI managed to crawl back above the 1,500-level to end the week at 1,507.26 points after it hit an intraday low of 1,496.76 points.

The index went up barely 2.35 points or 0.16% despite the news of a new breakthrough in trade talks between China and the US.

For the week, the benchmark index dropped 38.76 points or 2.51%, the largest percentage drop in seven weeks, amid absence of fresh buying impetus to sustain the upward momentum. 

Trading volume came in at 6.32 billion shares worth some RM4.92 billion, while gainers led losers by 610 to 400.

Among the 30 KLCI constituents, gainers were led by Petronas Dagangan Bhd, up RM1.10 or 5.22% to close at RM22.16 today, followed by Top Glove Corp Bhd which rose 70 sen or 4.8% to RM15.40 and Hartalega Holdings Bhd which was up 58 sen to RM12.08.

The gains among the rubber glove stocks made the Bursa Malaysia Healthcare Index the best performer among all sectors. The index climbed 71.96 points or 3.3% to 2,274.17 points today.

Other gainers across the local bourse included Allianz Malaysia Bhd, which was up 64 sen or 4.43% to RM15.08, and QL Resources Bhd, which went up 60 sen or 6.52% to RM9.80.

The most active stock was Prestariang Bhd, with a trading volume of some 280.99 million shares, soaring to its 52-week high of 59 sen in the morning session. The counter closed at 54.5 sen, up 12.4% for the day.

Globally, Bloomberg reported that global stocks rose with US futures as investors cheered the latest breakthrough in trade negotiations between America and China and stimulus talks in Europe.

China was reportedly planning to accelerate purchases of American farm goods to comply with the phase one trade deal with the US following talks in Hawaii.

Nevertheless, with uncertainty over how quickly economies can emerge from lockdowns, and a welter of options set to expire later today, investors were bracing for potential bouts of volatility.

“The quarterly event, known as quadruple witching, usually coincides with a rebalancing of major indices and can spark some of the busiest trading days of the year,” it said.