KUALA LUMPUR (Oct 8): The main index at Bursa Malaysia pared some of its gains and slipped to below the 1,500-point threshold against the backdrop of firm regional markets, as lingering worries over further lockdowns over rising Covid-19 cases weighed.

Yesterday, the government announced a Conditional Movement Control Order (CMCO) starting this Friday in Klang and in areas classified as red zones in Sandakan, Papar, and Tuaran in Sabah, following the increase in Covid-19 cases in these areas.

At 12.30pm, the FBM KLCI was up 10.35 points to 1,499.91. The index had earlier risen to a high of 1,503.93.

Gainers led losers by 333 to 272, while 672 counters traded unchanged. Trading volume was 3.46 billion shares valued at RM1.66 billion.

The gainers included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Ajinomoto (M) Bhd, PPB Group Bhd, Hong Leong Financial Group Bhd, Petronas Dagangan Bhd, ViTrox Corp Bhd, Petronas Chemicals Group Bhd, Scientex Bhd and Hap Seng Consolidated Bhd.

The actively traded stocks included Trive Property Group Bhd, Kanger International Bhd, Bintai Kinden Corp Bhd, XOX Bhd, Advance Synergy Bhd and Bina Puri Holdings Bhd.

The decliners included Heineken Malaysia Bhd, Hong Leong Industries Bhd, G3 Global Bhd, Kossan Rubber Industries Bhd, Batu Kawan Bhd and Carlsberg Brewery Malaysia Bhd.

Reuters said a gauge of Asian shares climbed to a one-month high on Thursday, as renewed hopes for more US stimulus helped restore investor confidence with markets now pricing in a Democratic victory during elections in November.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3% for its fourth straight session of gains to a level not seen since early September, it said.

Hong Leong IB (HLIB) Research said although the Dow’s 530-point rally overnight may create a positive spillover effect on Bursa Malaysia today, any rebound is likely to be capped near 1,500-1,513 zones (key supports now are 1,446-1,461-1,474), due to heightened concerns that further lockdowns and surging Covid-19 cases and clusters locally, coupled with lingering political uncertainty, could significantly impact Malaysia's economic and social systems.

“On stocks selection, HLIB reiterates an 'overweight' rating on the glove sector with Top Glove Corp Bhd as our top buy (other picks are Hartalega Holdings Bhd and Kossan).

“In our view, escalating Covid-19 cases worldwide and without a concrete vaccine timeline, demand for gloves remains robust,” it said.