KLCI stays ahead of 1,600 as rally takes pause

KUALA LUMPUR: Profit-taking halted the rally on Bursa Malaysia as global markets tracked Wall Street lower amid rising coronavirus cases.

At 12.30pm, the FBM KLCI was down 8.99 points to 1,601.16 as investors sought safety in the 1,600 psychological level following recent gains.

"Following the breakthough above the 1,600 psychological level, we now expect the higher possibility of profit-taing over the near term.

"Still, further upsides remain on the table over signs of a resurgence in bargain-hunting in glove-related stocks amid their attractive valuations, coupled ith strong near-term fundamentals," said Malacca Securities Research.

Overnight, Wall Street retreated as several US states imposed restrictions on gatherings following another surge in Covid-19 cases.

The pullback offset the euphoria experienced by global markets as Pfizer and Morderna announced breakthroughs in the development of a vaccine.

Malaysian financial counters, which marched higher in light of the news, slumped on Wednesday. Maybank fell 14 sen to RM8.16, Public Bank dropped 12 sen to RM18.78, RHB lost 11 sen to RM5.18 and CIMB slid nine sen to RM3.71

Hong Leong Bank bucked the trend to gain 10 sen to RM18.

Meanwhile, Top Glove's share price stabilised after a rout yesterday on a drop in sentiment over latex gloves demand and news that a portion of the group's workforce would be put in quarantine for Covid-19 infections.

The glove maker dropped a further one sen to RM6.99. Sector peer Hartalega also descended by 30 sen to RM14.34.

Meanwhile, MISC fell 19 sen to RM7.22 and MAHB dropped 17 sen to RM5.63 following their recent price gains.

On the actives list, PHB rose 0.5 sen to 3.5 sen, Netx dropped three sen to 14.5 sen and AT Systemization fell four sen to 20.5 sen.

In Asian markets, Japan's Nikkei fell 0.7% and China's composite index rose 0.5% while Hong Kong's Hang Seng gained 0.6%. South Korea's Kospi added 0.4% and Australia's ASX 200 climbed 0.3%.

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Bursa Malaysia , FBM KLCI , equities


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