KLCI pares gains as index-linked glovemakers continue to succumb to profit taking

TheEdge Wed, Jun 03, 2020 10:21am - 10 months ago

KUALA LUMPUR (June 3): The FBM KLCI pared some of its gains at mid-morning today as index-linked glovemakers continued to succumb to profit taking.   

At 10.10am, the FBM KLCI was up 4.17 points to 1,511.86. The index had earlier risen to a high of 1,518.55.

Gainers led losers by 468 to 338, while 353 counters traded unchanged. Trading volume was a brisk 3.09 billion shares valued at RM1.79 billion.

The top gainers included Dutch Lady Milk Industries Bhd, Hong Leong Bank Bhd, Public Bank Bhd, Hong Leong Financial Group Bhd, Aeon Credit Service (M) Bhd, Malayan Banking Bhd, Allianz Malaysia Bhd, British American Tobacco (M) Bhd, Frontken Corp Bhd and RHB Bank Bhd.

The actives included Hibiscus Petroleum Bhd, Bumi Armada Bhd, Velesto Energy Bhd, Icon Offshore Bdh, KNM Group Bhd, Alam Maritim Resources Bhd, Rimbunan Sawit Bhd and Sapura Energy Bhd.

The decliners were led by Hartalega Holdings Bhd, Top Glove Corp Bhd, Rubberex Corp Bhd, Kossan Rubber Industries Bhd, Comfort Gloves Bhd, Adventa Bhd, Supermax Corp Bhd and Petronas Dagangan Bhd.

Bloomberg said Asian stocks extended a global stock rally Wednesday as investors continued to bet on a quick economic recovery from the coronavirus pandemic. The dollar slipped again.

Japanese shares led gains on yen weakness overnight, and stocks in Australia and South Korea also climbed. U.S. futures pushed higher after the S&P 500 closed at its highest since early March, with energy shares rising as crude oil extended its rebound. Gunmakers extended rallies as President Donald Trump vowed to dispatch troops if the recent social unrest isn’t contained. Treasuries were steady after Tuesday’s retreat, it said.

Hong Leong IB Research said after refilling the 1460-1480 gap and crossed above the 1500 psychological barrier coupled with solid gains from Wall St and oil prices overnight,

It said KLCI may creep higher towards the long-awaited 200D SMA near 1518 levels today.

“On stock selections, we expect glove stocks to continue an extended profit taking correction amid stratospheric valuations and steeply overbought levels after recent unprecedented rally, as more brokerage houses tighten margin financing for glove counters.

“Meanwhile, in wake of the robust trading activities on Bursa Malaysia, there could be trading opportunities on Bursa Malaysia Bhd, N2N Connect Bhd, Excel Force MSC Bhd, TA Enterprise Bhd and Kenanga Investment Bank Bhd,” he said.

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