KUALA LUMPUR (Sept 11): The FBM KLCI reversed its earlier loss to close higher at the midday break today after Malaysia’s Industrial Production Index (IPI) returned to a positive growth — for the first time since February — of 1.2% in July 2020.

At 12.30pm, the KLCI was 4.55 points higher at 1,494.67. The index earlier in the morning slipped to a low of 1,477.47.

Gainers overtook losers by 379 to 279, while 700 counters traded unchanged. Trading volume was 4.75 billion shares valued at RM3.86 billion.

The top gainers included Supermax Corp Bhd, Top Glove Corp Bhd, Rubberex Corp (M) Bhd, Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Bursa Malaysia Bhd, Comfort Gloves Bhd, Careplus Group Bhd, Adventa Bhd and ViTrox Corp Bhd.

The actively traded stocks included XOX Bhd, Sapura Energy Bhd, Top Glove, Borneo Oil Bhd, Kanger International Bhd, Careplus, HLT Global Bhd and Supermax.

The decliners included Nestle (Malaysia) Bhd, Petronas Dagangan Bhd, Kuala Lumpur Kepong Bhd, Tenaga Nasional Bhd, Fraser & Neave Holdings Bhd, Hap Seng Consolidated Bhd, CE Technology Bhd, Milux Corp Bhd and Latitude Tree Holdings Bhd.

Reuters said Asian shares struggled to stem a bearish mood today after US big tech firm shares fell again overnight on growing doubts about US stimulus and worries about their stretched valuations.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2%, hovering just above a one-month trough touched earlier this week. Japan's Nikkei rose 0.3%, Reuters reported.

Hong Leong Investment Bank (HLIB) Research said tracking further downward consolidation on Wall Street and the technically bearish KLCI, the local index is expected to extend its consolidation mode during the seasonally sluggish September outing (it tumbled about 1.7% each September in 2000-2019).

“Overall, volatility remains elevated amid domestic political uncertainties [ahead of the Sept 26 Sabah state election], worries about a Covid-19 resurgence in the fall and winter, escalating US-China tensions, potential delays in vaccine development timelines and a stalemate in US Congress over additional pandemic aid, coupled with uncertainties ahead of the looming US presidential election on Nov 3.  

“Key supports are pegged at 1,474-1,461-1,428, while resistances are situated near 1,506-1,521-1,542,” the research house added.