Glove makers extend rally, KLCI climbs

  • Economy
  • Wednesday, 13 May 2020

KUALA LUMPUR: Glove makers extended their rally early Wednesday as expectations of fresh Covid-19 infections globally would continue to spur demand.

At 9.25am, the FBM KLCI was up 3.87 points or 0.28% to 1,383.80. Turnover was 1.11 billion shares valued at RM591mil. There were 206 gainers, 358 losers and 234 counters unchanged.

Bloomberg reported the risk-off sentiment that’s crept back into global markets took hold further on Wednesday as Asian stocks opened lower with US equity futures following warnings on the fragility of the economic recovery. Treasuries held on to gains.

Futures on the S&P 500 fell 0.8% as of 9:01 a.m. in Tokyo. The gauge decreased 2.1%. Japan’s Topix index fell 0.9%. South Korea’s Kospi dropped 1.3%. Australia’s S&P/ASX 200 Index slipped 0.3%.

Reuters reported oil prices fell after industry data showed a rise in US crude inventories and concerns mount about a possible second wave of the coronavirus pandemic in countries easing lockdowns.

Brent crude was down 49 cents, or 1.6%, at $29.49 by 0034 GMT, having risen 1.2% on Tuesday. US crude was down 41 cents, or 1.6%, at $25.37 a barrel, after jumping nearly 7% in the previous session.

At Bursa on Tuesday, foreign funds were net sellers at RM159.9mil but again the selling was well absorbed by local institutions and retail investors who were net buyers at RM77.1mil and RM82.9mil.

Later in the afternoon, Bank Negara Malaysia will announce the state of the economy as all economists expect a contraction in the first quarter.

AmInvest Research’s estimates suggest that 1Q GDP could hover around -2.8% to -3.5%. “However, we feel that the GDP should drop by 3.5%. It will be the first contraction since 2009, ” it said.

Top Glove rallied 73 sen to RM8.72, Kossan 40 sen to RM6.70, Comfort 27 sen to RM2.54, Hartalega 25 sen to RM7.78 and Careplus 20 sen to RM1.09.

Tenaga fell 30 sen to RM12.04, KL Kepong 18 sen to RM20.42 and LPI 12 sen to RM12.90.

Carlsberg lost 26 sen to RM27.42, Heineken 18 sen to RM23.60 and BAT 18 sen to RM12.90.

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pandemic , glove makers , GDP


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