KUALA LUMPUR (Feb 3): The main index of Bursa Malaysia had pared some its gains at the midday break today as index-linked glove makers ranked among the decliners, while regional bourses rallied.

At 12.30pm, the FBM KLCI was up 5.53 points at 1,586.02. The index earlier rose to a high of 1,593.46.

Gainers led losers by 624 to 410, while 419 counters traded unchanged. Trading volume was 3.16 billion shares valued at RM2.34 billion.

The gainers included Malaysian Pacific Industries Bhd, UWC Bhd, ViTrox Corp Bhd, Nestle (Malaysia) Bhd, Greatech Technology Bhd, KESM Industries Bhd, Mi Technovation Bhd, Pentamaster Corp Bhd and Toyo Ventures Holdings Bhd.

The actively traded stocks included Iris Corp Bhd. Greatech, Dagang NeXchange Bhd (DNeX), QES Group Bhd and Vizione Holdings Bhd.

The decliners included Fraser & Neave Holdings Bhd (F&N), Kuala Lumpur Kepong Bhd (KLK), Supermax Corp Bhd, Sarawak Oil Palms Bhd, Top Glove Corp Bhd, Hartalega Holdings Bhd and Rubberex Corp (M) Bhd.

Reuters said Asian shares and US stock futures rose today as governments around the world looked poised to boost spending to help economies recover from the coronavirus and vaccine roll-out programmes accelerated.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.51%. Australian stocks jumped by 1.12%. Shares in China fell 0.06%, it said.

Hong Leong Investment Bank (HLIB) Research said pending more details of an extension of the second movement control order (MCO 2.0) to Feb 18 (already widely expected by market), the KLCI is likely to trend higher today in line with overnight gains on Wall Street and improving technical readings.

“However, the index could face some stiff resistance at 1,600-1,618 amid elevated Covid-19 infections and the start of the February reporting season.

“Nevertheless, severe downside risks could be mitigated by the grossly oversold indicators (key support levels: 1,535-1,563) and the availability of the vaccine, coupled with supportive monetary conditions and fiscal initiatives.

“Given the potential for volatility, a balanced portfolio remains appropriate. Hence, we would adopt a more balanced approach in our top picks with a combination of recovery plays, volatility, defensives, value and sold-down pandemic beneficiaries,” it said.