KLCI snaps six days of losses as bargain-hunting ensues


KUALA LUMPUR: Bursa Malaysia was lifted by bargain-hunting activities in the morning session as investors moved into oversold counters following six straight days of losses.

At 12.30pm, the FBM KLCI was up 7.9 points to 1,602.7 with Top Glove, Hartalega and Public Bank leading the gains.

World's largest glove maker Top Glove which had come under pressure recently owing to Covid-19 infections in its factories, was seen bouncing 30 sen higher to RM6.32.

Rival glove maker Hartalega also jumped 46 sen to RM12.26 as analysts opine that the sector had been oversold with the earnings outlook remaining optimistic.

Meanwhile, the country's leading financial heavyweights recovered some ground after losses recorded earlier in the week on concerns over the ailing economy.

Public Bank climbed 26 sen to RM21.82 while Maybank added two sen to RM8.07. Hong Leong Bank however down down four sen to RM17.54 and CIMB slipped one sen to RM3.99.

Malacca Securities Research had forecast mild bargain-hunting activities on the local front on the back of Wall Street's recent record-breaking rally.

However, it expects gains to be capped given the extension of the movement control order in the six affected states.

"Technical indicators still have a negative bias for the time being with the MACD histogram extending another red bar while the RSI is below 50.

"We expect the upside to be limited at 1,600-1,620 while support is pegged at 1,590, followed by 1,570," it said.

On the broader market, the top active stocks were Kstar down 2.5 sen ot 23 sen, Dnex unchanged at 25.5 sen and Vsolar flat at four sen.

Meanwhile, Asian stocks retreated from recent highs on profit-taking with China's composite index slipping 0.7% and Japan's Nikke dropping 0.4%.

Hong Kong's Hang Seng dove 1.5%, South Korea's Kopsi slid 0.1% and Australia's ASX200 lost 0.4%.

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Bursa Malaysia , FBM KLCI , equities

   

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