Tenaga again underpins KLCI’s early advance

KUALA LUMPUR: Fund buying of Tenaga Nasional underpinned the FBM KLCI’s early gains while semicon and tech stocks were among the top gainers, riding on the overnight rally on Wall Street.

At 9.15am, the KLCI was up 8.49 points or 0.54% to 1,575.63. Turnover was 1.31 billion shares valued at RM578.64mil. There were 408 gainers, 250 losers and 367 counters unchanged.

Overnight on Wall Street, the S&P 500 had its best day since June 5, with investors taking lower US bond yields in stride on optimism over the US$1.9 trillion coronavirus relief bill and distribution of Johnson & Johnson's newly authorised Covid-19 vaccine.

The Dow Jones Industrial Average rose 603.14 points, or 1.95%, to 31,535.51, the S&P 500 gained 90.67 points, or 2.38%, to 3,901.82 and the Nasdaq Composite added 396.48 points, or 3.01%, to 13,588.83.

Oil prices fell more than 1% on Monday as fears that Chinese oil crude consumption is slowing and that OPEC may increase global supply following a meeting this week.

Brent crude settled at US$63.69 a barrel, falling 73 cents, or 1.1%, and U.S. West Texas Intermediate (WTI) crude settled at $60.64 a barrel, losing 86 cents, or 1.4%.

At Bursa on Monday, local funds were net sellers at RM171.3mil but local retail investors remained net buyers at RM121.1mil and foreign funds at RM50.3mil.

Maybank IB Research said after a weak start on Monday, the market will continue to trade in a cautious mode, as the development of Covid-19 vaccines will continue to weighon index-linked glove makers.

"Technically, we expect the KLCI to range between 1,560 and 1,620 today with downside supports at 1,550 and 1,500," it said.

Tenaga rose 10 sen to RM10.42 after the strong earnings and its dividend. HLFG climbed 22 sen to RM16.98.

MPI was the top gainer, up RM1.86 to RM42.96, KESM 36 sen to RM14.46, Vitrox 28 sen to RM16.50, UWC 13 sen to RM6.58 and Pentamaster 11 sen to RM6.31.

As for consumer stocks, Carlsberg rose 14 sen to RM23.84 and BAT 16 sen to RM12.76.

However, Heineken fell 60 sen to RM24.80 and Dutch Lady 10 sen to RM34.80.

Glove makers continued to come under pressure as Supermax lost 19 sen to RM4.17, Top Glove 14 sen to RM4.76 and Comfort Gloves 10 sen to RM1.90.

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