KLCI rebounds but trading sentiment remains cautious


  • Markets
  • Friday, 18 Sep 2020

KUALA LUMPUR: The FBM KLCI rebounded on Friday after a sharp sell-off in the previous session as investors rushed to make bargain purchases.

At 12.30pm, the index was up 6.73 points to 1,519.8, which erased a little more than a third of the previous day's losses.

The recent volatility and sell-off however seemed to have taken the shine off equities as trading activity slowed from recent days with 3.88 billion shares exchanging hands valued at RM2.39bil.

"We reckon that a consolidation may take shape in view of the lack of fresh leads.

"The renewed volatility will keep traders on their toes as quick profit-taking activities may limit any significant upsides over the near term," said Malacca Securities Research.

However, the FBM KLCI is en route to ending the week on a positive note, and has has managed to return above the 200-day simple moving average, which it gave up during the previous week's correction.

On Friday, Top Glove advanced 19 sen to RM RM7.98 after falling a whopping 7.5% in the previous session following the release of its FY20 results.

Hartalega, which ended the Thursday session unchanged, gained 12 sen to RM14.22.

Petronas counters also reacted positive to a rapid rise in crude oil prices. Petronas Dagangan jumped 50 sen to RM2.82 and Petronas Gas gained four sen to RM16.60. Petronas Chemicals meanwhile was unchanged at RM5.60.

Among other notable gainers, IOI was up 11 sen to RM2.82, Tenaga Nasional rose six sen to RM11.10 and IHH gained seven sen to RM5.41.

Meanwhile, Asian markets made some headway after the falling in unison on Thursday amid global economic recovery anxieties.

Japan's Nikkei rose 0.1%, China's benchmark index was up 0.6%, Hong Kong's Hang Seng gained 0.3% and South Korea's Kospi added 0.1%.

Following sharp gains overnight, crude oil prices continued to rise as Opec moved to enforce penalties on members that did not comply with its output cuts.

Brent crude climbed 22 cents to US$43.52 a barrel and US crude rose 16 cents to US$41.13 a barrel.
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Bursa Malaysia , FBM KLCI , crude oil , equities

   

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