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KUALA LUMPUR: Investors were quick to invest in health stocks to propel FBM KLCI higher on Monday, extending the stock market rally after a recent strong selloff.
At 12:30 pm, the KLCI FBM was up 2.82 points to 1,507.67, with net gains mainly attributable to gains in Top Glove and Hartalega.
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“We see signs of changes in the tides as the FBM KLCI will be largely dictated by the movement of the glove manufacturers’ heavyweights.
“Gains in foreign markets may provide some stability in the short term, but we do not rule out increased volatility in the future due to a barrage of lingering uncertainties,” Malacca Securities Research said in its market outlook.
From a technical perspective, the FBM KLCI had formed a “bullish engulfing candle,” the research house said, as the key index closed above the 1,500 psychological level last Friday.
Positive momentum is expected to build towards the next resistance at 1.515-1.555. Meanwhile, its support is at 1,480 and 1,450.
Glove counters were higher across the board with Top Glove gaining 73 sen to RM8.49, Hartalega rising 38 sen to RM12.82, Supermax advancing 74 sen to RM8.24, Comfort Gloves rising 30 sen to RM3.97, Careplus jumping 49 sen to RM3 and Rubberex adding 18 sen to RM5.46.
However, the financial sector was seen to offset the gains in the FBM KLCI. Maybank fell 15 sen to RM7.30, Public Bank fell six sen to RM16.02, CIMB lost two sen to RM3.15 and Hong Leong Bank lost four sen to RM14.76.
The three most actively traded stocks were Parkson, which rose 11 sen to 20.5 sen, Kanger rose 4.5 sen to 30.5 sen, and Hiap Teck gained three sen to 21 sen.
In Asian markets, however, the news that AstraZeneca had resumed its phase three trial of a coronavirus vaccine helped boost confidence.
China’s key index rose 0.6%, while Hong Kong’s Hang Seng gained 0.7%. Japan’s Nikkei was up 0.6% and Australia’s ASX200 was up 0.6%.
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