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KUALA LUMPUR (September 29): FBM KLCI closed down 7.76 points or 0.51% at 1,503.90 today, in part due to profit-taking in rubber glove manufacturers’ stocks as investors continue weighing the impact of the resurgence of global Covid-19 infections in global markets.
At a glance, the KLCI closed lower after volatile trading, as investors appeared to reassess the economic impact of Covid-19 in Malaysia after the World Bank said today that its 2020 economic growth forecast for Malaysia, Measured by real gross domestic product (GDP), it had been slowed to a 4.9% contraction from the previously estimated 3.1% decline.
Vincent Lau, Research Vice President at Rakuten Trade Sdn Bhd, told theedgemarkets.com: “The World Bank’s sentiment declined that our (Malaysia) GDP will shrink 4.9% this year and will also benefit from the glove stocks ”.
Investors are also reported to be looking towards the first US presidential debate later today before the US presidential election on November 3, 2020.
In Bursa Malaysia at 5pm today, 5.15 billion securities were traded for RM3.59 billion. The decliners led the winners at 612 to 412 respectively.
Lau further commented: “The market is still in consolidation mode, we expect it to improve.”
Bursa’s top countries in decline were rubber glove makers Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, Top Glove Corp Bhd, and Supermax Corp Bhd.
Manufacturers of rubber gloves are among the constituents of Bursa’s Healthcare Index, which includes pharmaceutical companies and hospital operators.
Hartalega and Top Glove are also 30-share KLCI members. Hartalega’s share price closed 42 sen or 2.41% lower at RM 17, while Top Glove fell 30 sen or 3.42% at RM 8.47.
The health index ended with a drop of 59.04 points or 1.55% at 3,759.05.
Globally, European stocks were reported to have slumped on Tuesday as investors awaited the first US presidential debate and watched the progress of a fiscal stimulus package in Washington.
Investors are reported to be weighing the potential impact on the US economy of the re-election of President Donald Trump or the victory of Democratic presidential candidate Joe Biden.
“Tonight’s debate will be critical, as it represents one of the last opportunities for either candidate to change the contours of the race,” Reuters quoted Deutsche Bank analysts in a note.
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