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KUALA LUMPUR (Nov 9): Bursa Malaysia’s main index contracted with the regional trend and fell at midday on profit taking in index-linked stocks, including Tenaga Nasional Bhd and PPB Group Bhd.
At 12.30 pm, the FBM KLCI fell 5.8 points to 1,513.84. The index had previously risen to a high of 1,533.05.
The losers outnumbered the winners by 373 to 335, while 754 meters traded unchanged. The trading volume was 6.34 billion shares valued at RM2.61 billion.
The main losers were Malaysia Pacific Industries Bhd, PPB, Malaysia Airports Holdings Bhd, Petronas Dagangan Bhd, Carlsberg Brewery Malaysia Bhd, Tenaga Nasional, Hong Leong Financial Group Bhd, Time dotCom Bhd and Nestle (M) Bhd.
Actively traded stocks included AT Systematization Bhd, Lambo Group Bhd, Pegasus Heights Bhd, XOX Bhd, Sapura Energy Bhd, Kanger International Bhd, and GD Express Carrier Bhd.
The winners were Dutch Lady Milk Industries Bhd, British American Tobacco (M) Bhd, ViTrox Corp Bhd, Latitude Tree Holdings Bhd, Panasonic Manufacturing Malaysia Bhd, Kumpulan Powernet Bhd, Fraser & Neave Holdings Bhd, and Ajinomoto (M) Bhd.
Reuters said stocks rose, oil prices spiked and the US dollar remained weak on Monday, as expectations of fewer regulatory changes and more monetary stimulus under US President-elect Joe Biden supported appetite for the risk.
The Democratic candidate’s victory in the US presidential election was largely down to the markets, which had been operating with the vision of a Biden presidency and a Republican-controlled US Senate since the week. last, he said.
Hong Leong IB (HLIB) Research said the Biden presidency, which is seen as moderate and less conflictual, and a stimulating budget for 2021 will likely keep the Malaysian market in celebration mode, but concerns about the economic impact of the growing number of areas under CMCO and The current November earnings season may restrict further recovery.
He said that weekly supports are set at 1,500-1,489-1,474, while resistances are near the 1,535-1,541-1,555 levels.
On the sector side, HLIB reiterated its “overweight” rating on the glove sector, given its strong earnings outlook, as it is a key beneficiary of strong global demand due to Covid-19.
“Furthermore, in the absence of a widely speculated windfall tax on the sector and with the removal of this significant excess, the sector is ready for a new recovery in the short term,” he said.
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