Fall in glove stocks offsets banks' rally

KUALA LUMPUR: The FBM KLCI ended the day in the red despite bank stocks gaining weight on the back of Bank Negara's decision to keep the overnight policy rate unchanged.

At 5pm, the key index was down 7.19 points ot 1,581.26, with most losses contributed by glove makers, which failed to hold on to yesterday's positive momentum.

Fears over the demand outlook on latex gloves have been on the rise as the roll-out of the Covid-19 vaccine programmes around the globe pick up pace.

Top Glove lost 13 sen to RM4.96, Hartalega dropped 20 sen to RM9.65 and Supermax fell 30 sen to RM4.36.

Meanwhile, the central bank's decision to keep the OPR status quo at 1.75% was well received by the banking sector.

Bank Negara was of the view that a recovery in global demand will lead to improved economic growth in 2Q onwards added fuel for the recent rally in financial counters.

Maybank was up six sen to RM8.20, Public Bank added one sen to RM4.23, CIMB jumped eight sen to RM4.37 and Hong Leong Bank climbed 40 sen to RM18.42.

Of actives, XOX slipped one sen to seven sen ,Key Alliance Group dipped 0.5 sen to 4.5 sen and Dagang Nexchange rose 2.5 sen to 64 sen.

In oil markets, crude prices advanced for a second straight session on the possibility that Opec+ producers might decide against increasing output at a key meeting later in the day.

Brent was up 0.3% to US$64.26 a barrel while US crude gained 0.25% to US$61.42 a barrel.

In key Asian markets, equities prices remained on the retreat as US bond yields remained elevated, with investors looking to the US Fed for signs it will keep long-term borrowing costs low.

Japan's Nikkei closed 2.1% lower while South Korea's Kospi fell 1.3%.

In China markets, the composite index slumped 2% while Hong Kong's Hang Seng shed 2.1%.

Australia's ASX200 dropped 0.8%.
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Bursa Malaysia , FBM KLCI , equities


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