FTSE Bursa Malaysia KLCI (^KLSE) 1,646.53 14.83 (0.90%)
updated at: Wed, 09 Dec 2020, 05:25PM MYT

Seeking opportunities in the recovery theme

Original Source From TheEdge Publish at Mon, 07 Dec 2020, 02:00AM

WITH investors rotating out of Covid-19-related counters that make gloves, personal protective equipment (PPE) and masks, big-cap conventional plays — including banking and gaming stocks — that are components of the FBM KLCI are back in the limelight.

The FBM KLCI ended at 1,597.58 points last Wednesday, up 1.2% from its close a day earlier, buoyed by the overnight record closing on Wall Street amid news that the Trump administration had agreed to start the transition process for President-elect Joe Biden to move into the White House.

FBM KLCI component stocks that saw positive overnight gains included Telekom Malaysia Bhd, which closed up 5.2% to end at RM4.84; Press Metal Aluminium Holdings Bhd, which was up 4.9% to RM6.40; and CIMB Group Holdings Bhd, which rose 3.9% to RM3.78. Interestingly, none of these stocks were among those that enjoyed extraordinary price gains due to the Covid-19 pandemic.

Pankaj C Kumar, a former director of investment at KSK Group Bhd, says the market’s initial reaction can be attributed to the news flow on the more than 90% effectiveness of the vaccine jointly developed by Pfizer Inc and BioNTech SE, as well as the Moderna vaccine.

“Investors viewed this development as a solution to the Covid-19 pandemic, hence the shift from cyclical stocks to growth and value stocks. That’s where we saw a rally in banking stocks, some consumer stocks as well as gaming stocks on the expectation that things will go back to normal in 2021,” he tells The Edge.

Pankaj: The market is still very much sensitive to news on the vaccine (Photo by Mohd Izwan Mohd Nazam/The Edge)
updated at: Fri, 29 May 2020 MYT
Participation (%)
Bought (MYR)
Sold (MYR)
Net
Foreign
( 24,36 % )
2.31 B 2.23 B 77.37 M
Local Institution
( 39,38 % )
3.66 B 3.67 B 0.00 B
Local Retail
( 36,26 % )
3.34 B 3.41 B -0.07 B