KUALA LUMPUR (Dec 8): The FBM KLCI finished stronger today, posting a 0.54% or 8.81-point gain to finish at 1,631.70, as investors return to glove manufacturers' stocks.
The headline index is now the highest it has been since June 2019.
Malacca Securities Head of Research Loui Low opined that the increase in the headline index was driven by investor interest in rubber glove stocks.
“It is worth noting that Top Glove Corp Bhd’s results will be released tomorrow, so there might be buying in anticipation of their results,” he said.
He pointed out that when there is greater buying interest in the counter, this tends to spill over onto other glove counters as well.
He added that some investors view that rubber glove stocks have more earnings certainty compared to other blue-chip counters amid the pandemic, noting that in the US and in Europe Covid-19 cases are still on the uptrend.
Indeed, the top movers for the FBM KLCI were Top Glove Corp Bhd, Genting Bhd, Petronas Gas Bhd and Hartalega Holdings Bhd. Top Glove in particular finished 7.42% or 49 sen higher at RM7.09 today.
Top actives on the local bourse included AT Systematization Bhd, PA Resources Bhd and Metronic Global Bhd. Meanwhile, top gainers were Nestle (Malaysia) Bhd, Supermax Corp Bhd and Batu Kawan Bhd, with British American Tobacco (M) Bhd, Hengyuan Refining Company Bhd and Solution Bhd constituting the top losers for the day.
In terms of trading volume, a total of 11.26 billion shares worth RM6.39 billion were traded today.
Despite the headline index posting a gain, the number of counters posting declines on the local bourse stood at 605, in comparison to the 524 that posted gains and 577 that went unchanged.
Certainly, the FBM KLCI went against the grain today when it came to regional market performances, which were largely in the red.
Japan’s Nikkei 225 was down 0.30% or 80.36 points at 26,467.08. Hong Kong's Hang Seng had finished 0.76% or 202.29 points lower at 26,304.56. The Shanghai Composite closed 0.19% or 6.43 points lower at 3,410.18. The Kospi also posted a decline, falling 1.62% or 44.51 points to 2,700.93.
Reutershad reported today that most Asian stock markets struggled to make gains today following the latest development in US-Sino ties.
“The mood was downbeat after the United States imposed financial sanctions on some Chinese officials on Monday, raising more fears about relations between the two countries, while losses on Wall Street overnight set the tone in early trading,” it said.