KUALA LUMPUR (June 1): The FBM KLCI rose 0.76% at mid-morning today as index-linked glovemakers and Tenaga Nasional Bhd lifted the benchmark index, against the backdrop of mixed regional markets while Malaysia factory output in May stabilised.

The early gainers included Top Glove Corp Bhd, Tong Herr Resources Bhd, Mega First Corp Bhd, Adventa Bhd, Rubberex Corp Bhd, Tenaga Nasional Bhd, Kossan Rubber Industries Bhd, Supermax Corp Bhd, Hartalega Holdings Bdh and Careplus Group Bhd.

The Malaysian manufacturing sector showed signs of approaching stabilisation midway through the second quarter, with rates of reduction in output, new orders and employment all easing considerably.

The headline IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose sharply to 45.6 in May, from April's survey-record low of 31.3.

At 10am, the FBM KLCI rose 11.35 points to 1,484.60.

Decliners led advancers by 437 to 386, while 297 counters traded unchanged. Tarding volume was a brisky 2.49 billion shares valued at RM1.61 billion.

The top gainers included Top Glove Corp Bhd, Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Tenaga Nasional Bhd, Adventa Bhd, Rubberex Corp Bhd and Supermax Corp Bhd.

The actives included HLT Global Bhd, Careplus Group Bhd, LKL International Bhd, JAG Bhd, Hubline Bhd, Key Alliance Group Bhd and XOX Bhd.

The decliners included Carlsberg Brewery Malaysia Bhd, Dutch Lady Milk Industries Bhd, Malayan Banking Bhd, Can-One Bhd and British American Tobacco (M) Bhd.

Bloomberg said U.S. stock futures retreated, while Asian equities were largely mixed in early Monday trading, as investors weighed the violent protests in some American cities that have stoked concerns about a reacceleration in infection rates and a damper on the economic recovery.

Hong Leong IB Research said it expects Bursa Malaysia to engage in a cautious mode this week following recent rally (+4.6% in May and +21.9% since COVID-19 bottom) as investors pay attention to Wall St amid widening civil unrests in the US over repeated racial injustice are raising fears of new coronavirus outbreak, which may threaten the economic recovery amid a gradual lifting of lockdowns. 

“Besides, the simmering US-China tensions and local results season are likely to weigh on sentiment. Weekly resistances are situated near 1480-1500 whilst supports fall on 1440-1460 levels,” it said.

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