KLCI climbs above 1,600 level as positive vaccine news aids market sentiment

KUALA LUMPUR (Nov 17): The FBM KLCI extended its gains for the second consecutive day as investors, particularly institutional funds, were rejigging their portfolios in view of the positive news flow of Covid-19 vaccines.

The benchmark index climbed above the 1,600-point level to close at 1,610.15, its highest since end-July, up 10.49 points or 0.66% for the day as market sentiment was boosted by the positive news.

Trading volume across the board was above the 16 billion mark for the second day in a row. Today’s volume was 16.4 billion shares. Turnover ballooned to RM7.96 billion from RM6.71 billion yesterday.

Gainers outnumbered losers at 627 to 567, while 554 counters closed unchanged.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong toldThe Edgethat the benchmark index went up further as Moderna Inc’s announcement that its experimental Covid-19 vaccine was 94.5% effective in preventing infection based on interim late-stage data. This reinforced hope that a vaccine could be available sooner than later.

Banking stocks continued to attract buying interest. Hong Leong Bank Bhd (HLB) gained 84 sen or 4.92% to RM17.90, Public Bank Bhd increased 42 sen or 2.27% to RM18.90, and Hong Leong Financial Group Bhd went up 34 sen or 2.17% to RM16.

Meanwhile, RHB Bank Bhd rose 11 sen or 2.12% to RM5.29, Malayan Banking Bhd (Maybank) climbed 16 sen or 1.97% to RM8.30 and CIMB Group Holdings Bhd rose three sen or 0.8% to RM3.80.

Bursa Malaysia's financial services index was the second highest among bourse’s indices, which shot up 311.81 points or 2.2% at 14,455.69.

Meanwhile, index-linked glove counters Top Glove Corp Bhd fell 20sen or 2.78% to its two-month low of RM7. Selling accelerated on the counter after the news that its workers’ dormitory in Klang under enhanced movement control order (EMCO) for two weeks, starting today.

However, its peer Hartalega Holdings Bhd reversed its downtrend today, the share price went up 14sen or 0.97% to RM14.64.

Gets Global Bhd topped the loser list today, skidded 86sen or 21.7%, after Bursa advised investors to exercise caution in trading the counter.

AT Systematization Bhd remained as the most actively traded list again. However, its trading volume shrank to 1.22 billion shares compared with 2.06 billion yesterday. Its share price closed lower at 24.5sen, down 1.5sen or 5.77%.

Among the most listed counters included MTouche Technology Bhd, Thrive Property Group Bhd, Lambo Group Bhd, Pegasus Heights Bhd, Metronic Global Bhd,PDZ Holdings Bhd,Pasukhas Group Bhd and EA Holdings Bhd

Elsewhere in Asia, Tokyo's Nikkei 225 rose 0.42% while Seoul's Kospi fell 0.15%.Hong Kong’s Hang Seng Index inched up 0.13% while the Shanghai Stock Exchange Composite Index closed down 0.21%.

Reuters reported that Asian stocks held gains and moved tentatively further into record territory on Tuesday, after US benchmarks were pepped up by news of another promising coronavirus vaccine, though futures indicated the rally could stall in European hours.