KLCI falls 0.56% as Top Glove and Hartalega drag

KUALA LUMPUR (Oct 15): The main index of Bursa Malaysia fell 0.56% in the mid-morning as glove makers Top Glove Corp Bhd and Hartalega Holdings Bhd dragged against a backdrop of mixed regional markets.

At 10am, the FBM KLCI had lost 8.50 points to 1,514.75.

Market breadth turned negative with 498 losers and 230 gainers, while 377 counters traded unchanged. Trading volume was 1.99 billion shares valued at RM1.53 billion.

The top losers included Fraser & Neave Holdings Bhd (F&N), Hartalega, Malaysian Pacific Industries Bhd, KESM Industries Bhd, Supermax Corp Bhd, Top Glove and Kossan Rubber Industries Bhd.

The actively traded stocks included Luster Industries Bhd, Samaiden Group Bhd, Key Alliance Group Bhd, Metronic Global Bhd, Advance Synergy Bhd, HLT Global Bhd and Sapura Energy Bhd.

The top gainers included Samaiden, Scientex Bhd, United Plantations Bhd, QL Resources Bhd, Bursa Malaysia Bhd and TIME dotCom Bhd.

Reuters said Asian markets were off to a mixed start today as hopes of US fiscal stimulus before the US presidential election faded and a record number of new coronavirus infections in parts of Europe propelled investors towards safe-havens such as gold.

Downbeat comments from US Treasury Secretary Steven Mnuchin that a stimulus deal is unlikely be made before the Nov 3 vote also weighed on already-fragile investor sentiment, it said.

JF Apex Securities Research said US markets declined overnight after Mnuchin said it’s difficult to agree on the coronavirus stimulus deal before next month’s US election while corporate results there failed to lift sentiment.

It said that earlier, European stocks dropped on coronavirus concerns after two drug trials were halted in the US.

“On the local market, the KLCI closed 1.95 points lower at 1,523.25 after recovering from an intraday low of 1,516.10.

“Following the negative performance on Wall Street, the KLCI could remain pressured and hover below the resistance at 1,550 points,” it said.

Source: TheEdgeMarkets