Bursa halted trading due to technical issue

by BERNAMA / pic by BLOOMBERG

SELLING pressure across Bursa Malaysia continues with the barometer index settling 12.08 points or 0.76% weaker at 1,573.48, mainly due to Top Glove Corp Bhd as the world’s largest glove manufacturer is facing US detention order on disposable gloves manufactured by its subsidiaries.

Trading on Bursa Malaysia Securities was halted at 3.30pm yesterday and the matter is currently being investigated, Bursa Malaysia Securities Bhd said yesterday.

Bursa Malaysia in a statement said trading will resume today as normal, with the last traded price to be used as the reference price.

The FTSE Bursa Malaysia KLCI (FBM KLCI) had opened 2.24 points lower at 1,583.32 compared to Wednesday’s close of 1,585.56. It moved between 1,572.11 and 1,599.53 throughout yesterday’s session.
Market breadth was negative with losers surpassing gainers 782 to 249, while 379 counters were unchanged, 555 untraded and 28 others suspended.

Total volume was higher at 9.28 billion units worth RM4.14 billion compared to 8.24 billion shares worth RM5.01 billion on Wednesday.

The glovemaker’s shares dipped about 10% to below RM20, wiping out RM3.2 billion of its market value.

It confirmed that the US Customs and Border Protection has placed a detention order effective yesterday on disposable of gloves manufactured by two of its subsidiaries, Top Glove Sdn Bhd and TG Medical Sdn Bhd.

AxiCorp Financial Services Pte Ltd chief global market strategist Stephen Innes told Bernama regional stock markets hit a bit of a roadblock despite positive sentiment overnight and a better than expected China’s second-quarter 2020 (2Q20) GDP data.

“The negative reading suggests that consumers are not spending and this reflects poorly for what is expected to be a consumer-driven economic recovery and hurts regional economies like Malaysia that has strong export ties with China,” he said.

China’s economy grew 3.2% in 2Q20, the first major economy to show recovery from the damage caused by the Covid-19. In 1Q20, its economy contracted by 6.8%.

Top Glove Corp dropped 56 sen to RM21.24 and Hartalega Holdings Bhd declined 44 sen to RM15.16.
Other glovemakers, Kossan Rubber Industries Bhd was 44 sen lower at RM15.16 and Supermax Corp Bhd lost 16 sen to RM14.90, with the four big glove companies wiping out a total RM10.6 billion in a single day.

Malayan Banking Bhd and IHH Healthcare Bhd went down nine sen each to RM7.82 and RM5.34 respectively, while Public Bank Bhd decreased 18 sen to RM18.42.

Of the most active, Pegasus Heights Bhd and XOX Bhd rose half-a-sen each to 2.5 sen and 10.5 sen respectively, while NetX Holdings Bhd was flat at one-sen.

On the index board, the FBM Emas Index inched down 97.46 points to 11,087.19, the FBM T100 Index depreciated 96.1 points to 10,940.85 and the FBM Emas Shariah Index was 122.26 points lower at 12,685.16.

The FBM 70 went down 168.32 points to 13,694.63 and the FBM ACE eased 66.28 points to 7,169.98. Sector-wise, the Financial Services Index slipped 97.11 points to 13,437.10, the Plantation Index inched down 6.99 points to 6,955.36 and the Industrial Products and Services Index lost 0.37 point to 137.4.

Main Market volume expanded to 4.76 billion units worth RM3.34 billion from 4.53 billion units worth RM4.08 billion on Wednesday.