KUALA LUMPUR (Jan 14): The main index of Bursa Malaysia struggled to hold on to its gains at the midday break today as index-linked glove makers retreated, while broader market sentiment was mixed as investors appeared to have digested clarity of the country’s state of emergency and second movement control order (MCO 2.0) rules.

At 12.30pm, the FBM KLCI closed 0.27 point higher at 1,636.96. The index earlier rose to a high of 1,646.24.

Losers overtook gainers by 403 to 340, while 725 counters traded unchanged. Trading volume was 3.73 billion shares valued at RM2.56 billion.

The gainers included UWC Bhd, Malaysian Pacific Industries Bhd, KESM Industries Bhd, Press Metal Aluminium Holdings Bhd, Toyo Ventures Holdings Bhd, Unisem (M) Bhd, Panasonic Manufacturing Malaysia Bhd, Mi Technovation Bhd, Kobay Technology Bhd and Euro Holdings Bhd.

The actively traded stocks included PNE PCB Bhd, Iris Corp Bhd, Kanger International Bhd, Fintec Global Bhd and JCY International Bhd.

The decliners included Nestle (Malaysia) Bhd, Hartalega Holdings Bhd, Fraser & Neave Holdings Bhd (F&N), Supermax Corp Bhd, Top Glove Corp Bhd. Kossan Rubber Industries Bhd and Comfort Gloves Bhd.  

Reuters said bonds slipped, Japanese stocks jumped to a three-decade high and other Asian equities loitered near record peaks today as investors focused on US stimulus prospects and extended bets on global recovery and growth.

Japan's Nikkei rose 1.4% to its highest point since August 1990. It was up more than 8% in three weeks. MSCI's broadest index of Asia-Pacific shares outside Japan was steady and just a whisker short of Monday's all-time high, it said.

Hong Leong Investment Bank (HLIB) Research said it is optimistic that the market would stabilise and move higher in the short to medium term after building a base near the 1,562-1,572 levels.

“Although the MCO 2.0 and state of emergency measures will pose downside risk to economic and corporate earnings growth, investors should not lose sight of light at the end of the tunnel as progressive vaccine roll-outs and accommodative fiscal and monetary policy would keep equities favourable.

“Technically, further decisive advances above the 1,638 (23.6% FR) hurdle could lift the KLCI higher towards the next 1,650 and 1,667 (200-day simple moving average) territory,” it said.