China rally helps KLCI stretch gains to six straight days


  • Markets
  • Monday, 06 Jul 2020

KUALA LUMPUR: Bursa Malaysia stretched its gains for the sixth straight day on Monday in a broad rally, as investor' confidence was further galvanised by the jump in Chinese blue chips and fund buying of glove makers.

At 5pm, the FBM KLCI was up 24.25 points or 1.56% to 1,576.90. Year-to-date, the 30-stock KLCI is down by just 0.75%.

Turnover was robust with 8.73 billion shares valued at RM5.07bil. There were 744 gainers, 333 losers and 407 counters unchanged.

The ringgit firmed up 0.1% against the US dollar to 4.2830.

Wire reports said signs of an economic rebound in China underpinned the advance in key Asian markets.

Eyes were on Chinese blue chips which jumped 5.4% on top of a 7% gain last week, to their loftiest level in five years. Even Japan's Nikkei, which has lagged with a soft domestic economy, managed a rise of 1.8%, Reuters reported.

In Hong Kong, Jefferies chief global equity strategist Sean Darby said the positive sentiment towards Asian markets was the result of better than expected regional economic data and elevated liquidity levels.

Japan's Nikkei share average rose 1.83% to 22,714.44, its highest close since June 10. The broader Topix gained 1.60% to 1,577.15.

At Bursa, glove makers were the top gainers. Top Glove was the top performer, up RM1.50 to RM19.96 and powerd the KLCI up by 6.32 points, Hartalega was up 50 sen to RM16.50 and added 2.65 points. Kossan bounced RM1.05 to RM10.38.

Supermax surged 95 sen to RM10.36. UOB Kay Hian Malaysia Research said against the backdrop of unmet burgeoning glove demand, Supermax is well positioned to be the best beneficiary of record high average seling prices hikes.

“Its OBM and distribution network are the envy of the industry. To top it all, this coincides with its timely yet aggressive multi-year expansion, outstripping its peers. With all these positives and consistent execution, Supermax should narrow its deep discount to comparable peers. Initiate coverage with Buy and target price of RM12.40,” it said.

US light crude oil rose 21 cents or 0.52% to US$540.86 and Brent gained 68 cents to US$43.48.

Petronas Chemicals ended 26 sen higher at RM6.94 and listed the KLCI by 3.25 points, Petronas Gas rose 52 sen to RM17.50 but Petronas Dagangan lost 60 sen to RM20.80. Dialog added seven sen to RM3.80.

Among the banks, Maybank added 2.11 points to the KLCI when it closeed 12 sen higher at RM7.83, Public Bank rose 28 sen to RM17.34, RHB Bank five sen to RM4.97 and Hong Leong Bank four sen to RM14.54 while CIMB was unchanged at RM3.70.

Crude palm oil for third month delivery rose RM48 to RM2,406 per tonne. KL Kepong 14 sen to RM22.64, IOI Corp rose 10 sen to RM4.50, PPB Group six sen to RM17.92 and Sime Plantation one sen to RM4.97.

Among the tech and semicon related stocks, JF Tech was the top gainer, up 42 sen to RM3.08.

As for telcos, Maxis edged up two sen to RM5.31, Digi six sen to RM4.34, Telekom five sen to RM4.19 but Axiata shed one sen to 3.49.

MISC ended 17 sen to RM7.99, Tenaga Nasional rose 10 sen to RM11.86, Genting edged up one sen to RM4.20 while GentingM was flat at RM2.58.
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Chinese blue chips , fund buying , gloves

   

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