KUALA LUMPUR (June 26): The FBM KLCI settled unchanged at 1,489.20 at Bursa Malaysia’s afternoon break today after volatile trade as concerns of a resurgence in global Covid-19 infections checked equity gains.

At 12:30pm, the KLCI settled flat after rising to its highest so far today at 1,495.57 before falling to its intraday low at 1,486.02.

Across Bursa Malaysia, a total of 2.69 billion shares were traded for RM1.11 billion as analysts predict window-dressing activities in the Malaysian stock market towards the end of the second quarter and as investors continue to be mindful of the resurgence in global Covid-19 infections.

Rakuten Trade Sdn Bhd wrote in a note today: "Wall Street continued to be volatile as it recovered and closed higher notwithstanding the rising Covid-19 cases as it opens its economy. Tech stocks continued to lead with Nasdaq reclaiming the 10,000 level once again. Today we expect regional markets to move higher in line with the positive US market." 

"On the local front, we believe the KLCI, which has been under selling pressure, is due for technical rebound and possible window-dressing activities, hence we advocate buy on weakness,” Rakuten said.

CGS-CIMB analyst analyst Lim Say Boon wrote in a note today that the second wave of Covid-19 infections in the US is causing markets to re-assess the rally that began in March 2020. 

"The market rebound has been built on a narrow base of high valuation info tech stocks. The market has also underestimated the economic and earnings damage caused by the Covid-19 pandemic,” Lim said.

Globally, it was reported that Asian stock markets ground higher on Friday, and are set to end a choppy week more or less where they began it as surging coronavirus infections cast a shadow over encouraging economic data and checked hopes for a swift global recovery.

It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3%, for a weekly gain of around 0.5%. 

Overnight on Thursday in the US, it was reported that shares were pushed higher by a loosening in bank regulations.

"Throwing some cold water on the rally, however, were the US Federal Reserve's capital limits for banks after its stress tests on the sector revealed key vulnerabilities,” Reuters reported.

The Dow Jones Industrial Average closed up 1.18%, the S&P 500 rose 1.10% while the Nasdaq Composite added 1.09%.