KUALA LUMPUR: Glove makers' record high prices and hopes that a Covid-19 vaccine could be found soon saw investors take some money off the table on Tuesday while pharmaceutical stocks were again in the limelight.
At 5pm, the FBM KLCI was down 13.62 points or 0.87% to 1,554.96 while year-to-date, it is down 2.13%. Turnover was 10.22 billion shares valued at RM7.62bil. Decliners beat advancers by a wide margin as there were 843 losers to 323 gainers and 344 counters were unchanged.
AmInvestment Research downgraded its call on the glove sector to neutral from overweight as at the current share price levels, the valuations for glove companies under its coverage – Top Glove, Kossan and Hartalega -- have fully priced in the companies’ earnings outlook.
“We now have a Hold call on Top Glove with unchanged FV of RM25.70. Our valuation is based on 33 times CY21F EPS. We assume ASP of US$35 in FY21F and US$25 in FY22F.
“We reiterate our Hold call on Hartalega with unchanged FV of RM18.74. Our valuation is based on 45 times CY21F EPS. We assume ASP of US$30 in FY22F and US$27 in FY23F, ” it said.
Top Glove fell RM2.50 to RM25.40 and erased 10.4 points from the KLCI while Hartalega lost RM1 and wiped out 5.26 points.
Supermax fell RM2.30 to RM19.80, Kossan RM1.30 to RM14.64 and Comfort 54 sen to RM2.30.
Pharmaniaga rose 69 sen to RM5.96 and Duopharma 34 sen to RM3.72 while Kotra added 21 sen to RM3.57.
Among the banks, Hong Leong Bank gained 18 sen to RM14.68 and HLFG 16 sen to RM12.66 but Maybank and CIMB shed one sen each to RM7.49 and RM3.39, Public Bank two sen to RM16.96while RHB Bank was flat at RM4.78.
Tenaga rose two sen to RM11.02, Genting three sen to RM3.57 while Genting was flat at RM2.21.
Crude palm oil for third month delivery fell RM54 to RM2,608 per tonne.
As for plantations, KL Kepong gained 14 sen to RM22.80, Sime Plantation added four sen to RM5.16, IOI Corp five sen to RM4.55 but PPB Group shed 10 sen to RM19.42.
Telekom jumped 14 sen to RM3.85, Digi added eight sen to RM4.20 Maxis six sen to RM5.09 while Axiata was flat at RM3.11.
US light crude oil fell four cents to US$42.58 while Brent was up 19 cents to US$45.32.
Among the energy stocks, Petronas Dagangan rallied 82 sen to RM21.22, Petronas Chemicals gained one sen to RM5.96 but Petronas Gas shed two sen to RM16.78. Dialog eked out a one sen gain to RM3.76.
The ringgit rose 0.16% against the US dollar to 4.1690 and for one month, it is up 2.21%.
Spot gold fell US$2.56 to US$1,926.32.
Among the key Asian markets, Japan's Nikkei 225 rose 1.35%, Hong Kong's Hang Seng Index fell 0.26%, China's Shanghai Composite Index shed 0.36% while Taiwan's Taiex added 0.88%. South Korea's Kosapit rallied 1.58% and Singapore's STI 0.74% higher.
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