Slide in glove counters sends KLCI sharply lower

KUALA LUMPUR: The FBM KLCI recorded a sharp fall in mid-morning trade as investors took profit off glove counters amid news of China's coronavirus vaccine being rolled out.

At 12.30pm, the FBM KLCI was down 11.54 points to 1,499.43. Hartalega was seen falling 82 sen to RM18.22 while Top Glove dropped 48 sen to RM9.

Other glove manufacturers were also similarly sold down, including Supermax down 54 sen to RM9.82, Kossan sliding 42 sen to RM7.71 and Comfort Gloves shedding 24 sen to RM4.64.

The outlook on the local bourse remains bearish amid the ongoing consolidation.

According to Malacca Securities Research, the absence of follow-through buying interest sent the index lower.

"With the lack of further buying support, the consolidation may prolong with immediate resistances at 1,530 followed by 1,540.

"On the flipside, the immediate support is located at 1,490, followed by 1,480," it said.

Meanwhile, Mah Sing slipped for a second day on profit-taking after having surged to a high of RM1.24 on Monday on news of its venture in rubber gloves. Investors sold down the share by seven sen to RM1.11.

The stock was the third most heavily traded of the morning with 166.29 million shares exchanging hands.

Topping the actives list was Luster down 3.5 sen to 19 sen on 451 million shares traded and AT Systemization unchanged at nine sen with 232.13 million shares crossing.

In Asian markets, renewed hopes for a new round of US stimulus saw investors returning to equities.

Japan's Nikkei rose 0.4% although China's key index was down 0.35%

Hong Kong's Hang Seng rose 0.7% while Australia's ASX200 was up 0.1% and South Korea's Kospi gained 0.4%.

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Bursa Malaysia , FBM KLCI , equities


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