KUALA LUMPUR (Aug 5): The FBM KLCI shed 0.05% at the midday break today, dragged by select index-linked stocks amid heavy trading volume of some 9 billion shares, while jewellery-linked counters scaled fresh highs on strong gold prices.

At 12.30pm, the FBM KLCI shed 0.77 points to 1,575.17.

Gainers led losers by 484 to 242, while 671 counters traded unchanged. Trading volume was 9.11 billion shares valued at RM4.76 billion, lower than the 11.06 billion shares valued at RM5.89 billion at the midday break Tuesday.

The top losers included Malaysian Pacific Industries Bhd, Kuala Lumpur Kepong Bhd, Petronas Gas Bhd, Hong Leong Industries Bhd, Favelle Favco Bhd, BIMB Holdings Bhd, Choo Bee Metal Industries Bhd and Mesianiaga Bhd.

The actively traded stocks included Vsolar Group Bhd, Bioalpha Holdings Bhd, DGB Asia Bhd, XOX Bhd, JAG Bhd, AT Systematization Bhd and Borneo Oil Bhd.

The advancing issuers included Bursa Malaysia Bhd, Fraser & Neave Holdings Bhd, Kossan Rubber Industries Bhd, Pharmaniaga Bhd, Nestle (M) Bhd, Adventa Bhd, Batu Kawan Bhd, Supermax Corp Bhd and Guan Chong Bhd.

Shares in Tomei Consolidated Bhd and Poh Kong Holdings Bhd soared as spot gold jumped to a record high of US$2,030.72 per ounce on Wednesday as bond yields hit new lows.

Gold prices have soared about 33% this year, said Reuters.

At the midday break, Tomei jumped 23.86% or 21 sen to RM1.09. The stock had earlier risen to a high of RM1.15.

Meanwhile, Poh Kong soared 23.72% or 18.5 sen to 96.5 sen, having earlier risen to 99.5 sen.

On the global markets, Reuters said gold scaled a new high on Wednesday as a weaker US dollar and falling bond yields burnished its safe-haven appeal, while shares were mostly lower as investors baulked at the ballooning cost of the coronavirus pandemic.

Risk assets such as equities have surged in recent months on massive policy stimulus from central banks and governments, but gold has also rallied in a sign of heightened uncertainty around the long-term effects of the global health crisis, it said.

Hong Leong IB Research said in the wake of fading impact of past stimulus measures and evidence that the global V-shaped recovery has stalled amid lingering fears of a second wave of Covid-19 infections coupled with heightened US-China geopolitical conflicts, it remains to be seen what will help to keep global stock markets elevated in the coming weeks.

“On the domestic scene, nagging political uncertainty and expectations of worsening reported numbers for 2Q20 (both GDP and corporate results) are the risks that could trigger further consolidation in August,” it said.