KLCI kicks off 2H2020 on positive note as manufacturing data shows promising growth

KUALA LUMPUR (July 1): The FBM KLCI started the second half of 2020 on a positive note and advanced 0.39% in early trade as Malaysia’a manufacturing data showed promising growth in June.

At 9.05am, the FBM KLCI rose 5.82 points to 1,506.79.

Malaysia’s manufacturing sector returned to growth during June as lockdown measures aimed at stemming the spread of the coronavirus disease 2019 (COVID-19) were partially lifted.

The headline IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose sharply to 51.0 in June, its highest since September 2018.

The gainers included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd, Top Glove Corp Bhd, QL Resources Bhd, Kossan Rubber Industries Bhd, Hong Leong Bank Bhd and DKSH Holdings (M) Bhd.

Bloomberg said Asian stocks started a new quarter in a muted fashion, as investors assessed mixed data on the global economy amid concern over the coronavirus spread and Sino-American tensions.

Shares were little changed in Japan, with sentiment capped as confidence among large manufacturers in the country fell to the lowest since 2009. Stocks ticked higher in Australia, while South Korea saw a bigger advance. Hong Kong is closed for a holiday. S&P 500 futures slipped after the gauge rounded out a 20% second-quarter surge with U.S. consumer confidence posting its biggest increase since 2011. Treasuries were little changed and the dollar edged higher. Gold traded near $1,800 an ounce, it said.

Rakuten Trade Sdn Bhd in its daily market report said the momentum rally continues on Wall Street as equities were broadly higher despite the resurgence of Covid-19 cases in the US.

It said the Dow Jones Industrial Average gained 217 points to close just below the 26,000 mark.

“Therefore, we reckon the regional market should be mixed today following a solid performance yesterday as market volatility is heightened.

“On the domestic front, we expect the FBM KLCI to remain stubborn at above the 1,500-level backed by local buying support with 1,510 as the immediate resistance,” it said.

Source: TheEdgeMarkets