Bursa set for further recovery

  • Markets
  • Monday, 14 Sep 2020

KUALA LUMPUR: Investors rushed into beaten-down heathcare stocks to push the FBM KLCI higher on Monday, extending the stock market's recovery after a recent sharp sell-off.

At 12.30pm, the FBM KLCI was up 2.82 points to 1,507.67, with the net gains mainly attributable to advances in Top Glove and Hartalega.

"We see signs of changing tides as the FBM KLCI will be largely dictated by the movement in glove maker heavyweights.

"Gains across overseas markets may provide some stability over the near term, but we do not discount further volatility ahead due to a barrage of lingering uncertainties," said Malacca Securities Research in its market outlook.

From a technical perspective, the FBM KLCI had formed a "bullish engulfing candle" said the research house, as the key index closed above the 1,500 psychological level last Friday.

It expects the positive momentum to increase towards the next resistance at 1,515 to 1,555. Meanwhile, its support is placed at 1,480 and 1,450.

Glove counters were higher across the board with Top Glove gaining 73 sen to RM8.49, Hartalega rising 38 sen to RM12.82, Supermax advancing 74 sen to RM8.24, COmfort Gloves climbing 30 sen to RM3.97, Careplus jumping 49 sen to RM3 and Rubberex adding 18 sen to RM5.46.

However, the financial sector was seen offsetting gains on the FBM KLCI. Maybank dropped 15 sen to RM7.30, Public Bank fell six sen to RM16.02, CIMB shed two sen to RM3.15 and Hong Leong Bank lost four sen to RM14.76.

The top three most actively traded stocks were Parkson up 11 sen to 20.5 sen, Kanger rising 4.5 sen to 30.5 sen and Hiap Teck gaining three sen to 21 sen.

In Asian markets however, news that AstraZeneca had resumed its phase three trial of a coronavirus vaccine helped to lift sentiment.

China's key index rose 0.6% while Hong Kong's Hang Seng gained 0.7%. Japan's Nikkei was up 0.6% and Australia's ASX200 climbed 0.6%.
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Bursa Malaysia , FBM KLCI , equities


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