KLCI pauses for breath after seven-day rally

  • Markets
  • Friday, 05 Jun 2020

KUALA LUMPUR: Bursa Malaysia succumbed to profit-taking on Friday after a seven-day winning streak as investors jumped on the recovery bandwagon.

From Monday through Thursday, the benchmark FBM KLCI gained 6% or over 88 points to put it within striking distance of its January peak.

However, unemployment data coming out of the US overnight, which showed a higher-than-expected number of claims, reminded investors that there was a long road ahead for an economic recovery.

Given that the relative strength index had been flashing an overbought signal, it seemed an opportune time for investors to take pause and some cash off the table.

At 9.10am, the FBM KLCI was down 7.58 points to 1554.26. Trading volume was 653.35 million shares valued at RM426.07mil.

Actively traded counters included XDL up 0.5 sen to seven sen, Ages up two sen to 19.5 sen and K1 down 1.5 sen tro 52.5 sen.

Meanwhile Top Glove rose RM1.08 to RM16.52 once again hit a new price record while Hartalega climbed 42 sen to RM12.20.

As glove manufacturers climbed, bank stocks descended from three-month highs. Hong Leong Bank dropped 20 sen to RM15.08, Public bank shed 20 sen to RM17.30 and Maybank slipped 11 sen to RM8.08.

Investors also took profit from Tenaga, which dropped 12 sen to to RM11.90, while Petronas Dagangan dipped 20 sen to RM22.

Meanwhile, oil traders remained on tenterhooks as they awaited confirmation from the world's biggest oil producers on whether there will be an extension to production cuts.

Brent was down 11 cents to US$39.88 a barrel and US crude slipped 19 cents to US$37.22 a barrel.
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Bursa Malaysia , FBM KLCI , crude oil , equities


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