KLCI reverses gains as index-linked plantations drag

KUALA LUMPUR (Oct 16): The main index at Bursa Malaysia reversed its gains and drifted lower at the midday break today as index-linked plantation stocks dragged.

At 12.30pm, the FBM KLCI dipped 2.82 points to 1,511.13. The index had earlier risen to a high of 1,520.31.

Gainers led losers by 346 to 296, while 712 counters traded unchanged. Trading volume was 4.59 billion shares valued at RM2.66 billion.

The top losers included Nestle (M) Bhd, Petronas Dagangan Bhd, PPB Group Bhd, United Plantations Bhd, Kuala Lumpur Kepong Bhd, Negri Sembilan Oil Palms Bhd, Hap Seng Consolidated Bhd, Public Bank Bhd, IOI Corp Bhd and Sime Darby Plantation Bhd.

The actively traded stocks included Mah Sing Group Bhd, Southern Cable Group Bhd, AT Systematization Bhd, Luster Industries Bhd, Kanger International Bhd, Lambo Group Bhd and Fintec Global Bhd.

The gainers included Hartalega Holdings Bhd, KESM Industries Bhd, Bursa Malaysia Bhd, LPI Capital Bhd, Mah Sing, ViTrox Corp Bhd, Carlsberg Brewery Malaysia Bhd, Wong Engineering Bhd, Ajinomoto (M) Bhd and Scientex Bhd.

Reuters said Asian stocks edged higher on Friday, buoyed by gains in China, but the mood was cautious due to a resurgence of coronavirus infections in Europe and the United States.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.27%. US stock futures also gained 0.32%, it said.

Hong Leong IB Research said barring any sharp pullback below 1,497 (the downtrend line from year-to-date high at 1,618) levels, KLCI’s near-term outlook remains positive, potentially heading towards the 1,530-1,563 band next.

However, it said the tug of war between bears and bulls could stay, considering the domestic political wrangling coupled with the uncertainty ahead of the Nov 3 election.

“Moreover, surging Covid-19 cases and clusters locally could pose downside economic risks, judging from the spiking cases in Klang Valley (which makes up about 41% of national GDP).

“Sector-wise, major beneficiaries from the imminent third wave of Covid-19 in Malaysia are gloves, technology, telcos and couriers while sectors [that are] most vulnerable appeared to be aviation, retail, F&B, gaming, malls and hotels,” it said.

Source: TheEdgeMarkets