KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
KUALA LUMPUR (March 12): The FBM KLCI closed down 24.4 points or 1.69% at its intraday low today while Bursa Malaysia’s index for small market capitalisation (small cap) stocks fell by a larger quantum after the World Health Organisation said on Wedesday (March 11) that COVID-19 is now a pandemic due the severity of the outbreak.
Such sentiment hit world equity and crude oil markets as investors weighed the economic impact of the COVID-19 outbreak and as the Russia-Saudi Arabia crude oil price war led to concerns of additional supply of the commodity.
At Bursa’s 5pm close, the KLCI closed down at 1,419.43 while the small-cap index fell 5.74% The sole gainer was the healthcare index after the gauge, which tracks stocks including rubber glove manufacturers, rose 0.15%.
The healthcare index rose as rubber glove manufacturers Top Glove Corp Bhd, Kossan Rubber Industries Bhd and Hartalega Holdings Bhd shares closed up among Bursa top gainers on expectation the COVID-19 pandemic will lead to higher glove demand.
Leading gainer Top Glove rose 23 sen or 3.66% to RM6.51 while Kossan added 18 sen or 3.52% to RM5.30.
"Overall, we advise investors to stay overweight on the glove sector despite its premium valuation, which is premised on strong global glove demand and a favourable operating environment, allowing glovemakers to outshine in terms of positive earnings growth in a volatile KLCI market. Currently, we have 'Add' recommendations for all four glove stocks, with Top Glove and Kossan as our top picks. Downside risks: sharp easing of coronavirus concerns and/or stronger ringgit vs US$,” CGS-CIMB Securities Sdn Bhd analyst Walter Aw wrote in a note today.
Across Bursa, 3.79 billion shares were traded for RM3.07 billion. There were 167 gainers versus 923 decliners.
Top decliners included Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd and Public Bank Bhd.
Across Asian equity indices, Japan’s Nikkei 225 closed down 4.41%, South Korea’s Kospi fell 3.87% while Hong Kong’s Hang Seng was down 3.66%.
It was reported that financial markets reeled on Thursday as stocks dived and oil slumped after US President Donald Trump took the dramatic step of banning travel from Europe to stem the spread of coronavirus, threatening more disruptions to trade and the world economy.
It was reported that with the pandemic wreaking havoc on the daily lives of millions worldwide, investors were also disappointed by the lack of broad measures in Trump’s plan to fight the pathogen, prompting traders to bet on further aggressive easing by the Federal Reserve.
"Market worries were compounded by the threat of a flood of cheap supply as Saudi Arabia promised to raise oil output to a record high in its standoff with Russia.
"Brent crude was trading down US$1.91, or 5.3%, at US$33.88 by around 0339 GMT, slightly above earlier lows. The contract fell nearly 4% on Thursday. US crude was down US$1.74, or 5.3%, at US$31.24 after dropping 4% in the previous session. Oil is down around 50% from highs reached in January,” Reuters said.
Source: The Edge
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