KUALA LUMPUR: Bursa Malaysia inched higher in early Tuesday trade, resuming after the long weekend, with glovemakers dominating the gainers' list
The FBM KLCI rose 3.60 points, or 0.22% to 1,655.75. It opened 2.16 points higher at 1,654.31.
Among the gainers, Hartalega
jumped 60 sen to RM3.05, Kossan added 34 sen to RM2.17, Top Glove rose 19.5 sen to RM1.11 and Supermax gained 14 sen to 93 sen.
IHH rose 19 sen to RM6.97, Gamuda added 13 sen to RM7.72 and QL Resources climbed 12 sen to RM4.64.
Among the decliners, Malaysian Pacific Industries lost 42 sen to RM27.68, Theta Edge fell 19 sen to RM1.54, United Plantations declined 12 sen to RM27.30 and APB gave up 12 sen to 89 sen.
CIMB Securities turned positive on the Malaysian glove sector, driven by further increases in tariffs on medical gloves imported from China into the US and the accelerated implementation timeline. Starting in 2025, the tariff rate will increase to 50%, with a further rise to 100% in 2026.
“We expect this to lead to a more favourable operating environment for Malaysian glove makers, leading to higher glove sales and ASPs due to the less competitive ASPs of Chinese glove makers.
“As a result, we are upgrading the sector from ‘neutral’ to ‘overweight’. Our top picks are Hartalega and Top Glove (recently upgraded), and we have ‘hold’ ratings on Kossan and Supermax,” it said.
Inter-Pacific Research said there should be further near-term gains as Bursa Malaysia stocks catch up to the upsides among key global indices during the Malaysia Day holiday.
The research house said this is likely to extend the FBM KLCI’s recovery, as mild bargain-hunting activities could still emerge to drive it higher in the near term.
The upsides could also be in tune with the recent gains among key global equity indices as the key index also looks to fortify its position above the 1,650 level.
However, Inter-Pacific said the buying interest may still be modest as many stocks are already fairly valued and there are also fewer leads as market players await for the Fed’s interest rate action.
“Therefore, the upsides could remain relatively modest with the immediate target set at the 1,653-1,660 levels, followed by the 1,662 level. The supports, meanwhile, are at 1,650 and 1,642 levels,” it added.
Meanwhile, TA Securities stated that, due to the weak selling momentum following recent profit-taking corrections, there is likely to be increased bargain-hunting interest
In the meantime, investors will be keenly awaiting a decision from the US central bank monetary policy meeting mid-week for a highly anticipated 25 basis point interest rate cut before increasing commitments.
“Immediate index support remains the recent correction low of 1,633, with 1,620 and 1,600 acting as stronger supports.
“Immediate resistance is set at 1,670, with the recent high of 1,684, then 1,695, Dec 2020 high, as tougher resistance levels,” TA said.
