KUALA LUMPUR (June 5): The FBM KLCI closed 5.51 points or 0.3% lower at 1,556.33 today, putting a brake on the uptrend seen over the past seven trading days as investors opted to take profit in view of the long weekend ahead.

However, in contrast to the dull performance of the benchmark index, automotive counters rose in the final hour after the Government announced supportive measures for the industry.

UMW Holdings Bhd jumped 23.5% or 55 sen to RM2.89, while Bermaz Auto Bhd leapt 21.1% or 16 sen to RM1.48 and DRB-Hicom Bhd surged 19 sen or 11.5% to RM1.84.

Other automakers posting strong gains included Tan Chong Motor Holdings Bhd, which jumped 8.4% or 9 sen to RM1.16 and MBM Resources Bhd, which surged 8.9% or 28 sen to RM3.43

Rakuten Trade Sdn Bhd research vice president Vincent Lau said the strong showing of the automotive stocks reflected a sectorial rotation, with funds moving into a laggard sector, driven by massive liquidity in the market.

“The Government’s move is definitely a goodie for the sector. However, the positive flow-through impact to the consumer and to the companies’ bottom-line remains to be seen at the moment,” Lau said.

The Government has announced a 100% sales tax exemption on CKD locally-assembled models and 50% on CBU fully-imported models starting from June 15 until Dec 31.

Across Bursa Malaysia, 8.67 billion shares worth RM6.19 billion were traded. There were 427 gainers and 615 decliners.

Leading gainers include Top Glove Corp Bhd (up 94 sen or 6.09% at RM16.38) and Supermax Corp Bhd (up 68 sen or 8.29% at RM8.88), both closing at record highs.

The Bursa healthcare index was the best performing index, rising 83.75 points or 3.5% to 2,456.51.

The day’s most active stock was Hibiscus Petroleum Bhd, which recorded a volume of 257.62 million shares. The counter closed up two sen or 3.03% at 68 sen.

Globally, Bloomberg reported that risk-appetite picked up as investors focused on government stimulus and shrugged off worries on sluggish economic data.

“Airlines, automakers and hotels led gains among European equities as investors scooped up beaten-up shares,” it said.

All eyes now turn to Friday’s US unemployment report, which traders will scrutinize for signs that the labour market has bottomed.