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Market Daily Report: KLCI lower at Bursa halt as Top Glove, China shares drop

 
KUALA LUMPUR (July 16): The FBM KLCI closed down 12.08 points or 0.76% at 1,573.48 today after a Bursa Malaysia trade halt and as Asian equity indices fell against a confluence of factors including deteriorating US-China ties and China's share plunge after announcing its latest economic growth data.

Exchange operator Bursa said in a statement that trading across the bourse was halted at 3:30pm due to a technical issue.

Interestingly and coincidentally, KLCI-linked Top Glove Corp Bhd's share price fell below RM20 in afternoon trade after the company confirmed the US Customs and Border Protection (CBP) had yesterday placed a detention order on disposable gloves manufactured by two of its subsidiaries, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd.

Trading in Top Glove's shares resumed following a suspension between 2:30pm and 3:30pm today in conjunction with the detention order announcement, which appeared on Bursa's website during the exchange's 12:30pm to 2:30pm break. 
 
At 3.30pm, across Bursa, 9.28 billion securities worth RM4.2 billion were traded.
Decliners led gainers by 782 to 249 respectively. Top Glove's share price ended RM2.10 or 9.63% lower at RM19.70 with some 27 million shares traded. Top Glove ended among Bursa Malaysia's top decliners.

Malacca Securities Sdn Bhd head of research Loui Low said negative sentiment across the local exchange was "mainly driven by rubber glove makers, especially from Top Glove."

From a technical standpoint, TA Securities Holdings Bhd analyst Stephen Soo said the research firm expects the KLCI to drift lower towards the weekend on speculation selling pressure will continue on glove counters after trading was halted across Bursa today.

“On the chart, our support levels stand at 1,550 and 1,509. While our resistance levels are 1,590 and 1,617,” he said.

Bursa said in separate statements today that trading across the exchange was halted at 3:30pm today due to a technical issue.

According to Bursa, it is diagnosing the problem and will communicate with all its participants while the regulator determines the cause of the technical issue and its impact.

"We will notify all relevant parties as soon as the issue has been resolved. The exchange will not reopen the securities market for trading today. The last traded price will be used as the reference price.

"The matter is currently being investigated. The exchange remains focused on ensuring there is minimal disruption to trading. Please be informed that trading on Bursa Malaysia will resume tomorrow, 17 July 2020 at 9:00am as normal," Bursa said.

Globally, it was reported that European shares opened lower on Thursday after Asian stocks faltered overnight, with risk appetite hit by deteriorating US-China relations and worse-than-expected Chinese domestic consumption data.

It was reported that China stocks posted their biggest fall in more than five months on Thursday, as investors cooled down their buying spree on signs of policy tightening after the country's economic growth in the second quarter beat expectations.

"The Shanghai Composite index closed down 4.5% at 3,210.1, while the blue-chip CSI300 index was down 4.81%, their largest drops since February 3.

"China's GDP grew 3.2% in the second quarter, beating expectation, but domestic consumption and investment remained weak," Reuters reported.



Source: The Edge

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