KLCI down 0.48% as key index-linked stocks drag

KUALA LUMPUR (Dec 2): The main index of Bursa Malaysia was down 0.48% in the mid-morning today, dragged by key index-linked stocks, against a backdrop of firm regional markets.

At 10am, the FBM KLCI had lost 7.61 points to 1,594.65.

Market breadth turned tepid with losers leading gainers by 441 to 426, while 450 counters traded unchanged.

Trading volume was 2.35 billion shares valued at RM1.14 billion.

The top losers included Petronas Gas Bhd, Tenaga Nasional Bhd (TNB), Petronas Chemicals Group Bhd, Kuala Lumpur Kepong Bhd (KLK), Khind Holdings Bhd, PPB Group Bhd, QL Resources Bhd and Top Glove Corp Bhd.

The actively traded stocks included AT Systematization Bhd, Sanichi Technology Bhd, Parkson Holdings Bhd, XOX Bhd, Bumi Armada Bhd and TDM Bhd.

The gainers included Nestle (Malaysia) Bhd, Malaysian Pacific Industries Bhd, KESM Industries Bhd, GETS Global Bhd, Hong Leong Bank Bhd (HLB), British American Tobacco (Malaysia) Bhd and Knusford Bhd.

Bloomberg said Asian stocks edged higher in early trading today, after fresh record highs reached by their US peers, as the renewal of US fiscal spending talks added to optimism about progress in the development of Covid-19 vaccines.

The US dollar held a slide to a more than two-year low, it said.

JF Apex Research said US stocks rallied yesterday, with the S&P 500 hitting a new record and the Nasdaq Composite notching a record close.

It said market sentiment improved significantly after a group of lawmakers unveiled a US$908 billion stimulus plan.

Likewise, European stocks closed higher, underpinned by optimism about an economic recovery next year, with the basic resources sector leading the gains.

“On the local front, the KLCI rebounded 39.55 points or 2.53% to 1,602.26 on bargain-hunting activities.

“This was led by gains in the Finance Index, which increased 2.93%. Market breadth was positive with 760 gainers, compared to 479 losers.

“Following the US markets hitting fresh highs, the local bourse is expected to follow suit to test the immediate resistance level of 1,615 points,” it said.

Source: TheEdgeMarkets