Parliament, glovemakers take FBM KLCI higher

by FARA AISYAH/ pic by RAZAK GHAZALI

THE resumption of the Dewan Rakyat and buying of glovemakers by investors pushed the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) above the 1,600-point level and is edging close to a new-year high.

The index closed at 1,606 with 9.55 billion units of securities traded.

Oanda Corp Asia-Pacific senior market analyst Jeffrey Halley said the ousting of the Speaker of the House yesterday suggests Prime Minister Tan Sri Muhyiddin Yassin has a workable, but very slim, majority to survive no-confidence votes.

“The Perikatan Nasional government support remains on a knife edge, and because of this, it will not provide a substantive source of confidence to the Malaysian markets in the weeks to come.

politics can finally play a positive role with international investors, instead of one that always creates nagging doubts,” he told The Malaysian Reserve.

He added that most of the rally yesterday was due to a general rally in Asian stock markets following a positive New York session last Friday.

Halley said the FBM KLCI will be able to continue its march higher with global equity markets, provided that the US brings Covid-19 under control, China’s rebound stays on track and a Covid-19 vaccine arrives in end-2020 or early 2021, among others.

“Malaysia will benefit from increased investor flows looking for better yields in this case. Unfortunately, there are a lot of if’s there and sentiment will continue to swing wildly from day-to-day,” he said.

Danny Wong expects the FBM KLCI to hover towards the end of the year.

“I think the main contributors for FBM KLCI improvement yesterday were the healthcare and tech stocks.

“Healthcare stocks are driven by the Covid-19 pandemic, while tech stocks are the future trend over next few years,” he said.

The top gainers on the local bourse yesterday were Supermax Corp Bhd which rose RM2.36 or 17% to RM15.98, Top Glove Corp Bhd rose RM2.08 or 9.5% to RM24 and Hartalega Holdings Bhd up 84 sen or 4.9% to RM17.90.

Other gainers were Fraser & Neave Holdings Bhd, Vitrox Corp Bhd, UWC Bhd, Kossan Rubber Industries Bhd, Microlink Solutions Bhd, Hong Leong Bank Bhd and Pentamaster Corp Bhd.