Investors upbeat on gloves, other sectors retreat

KUALA LUMPUR: Following the FBM KLCI’s advance in yesterday’s trading, the morning started with profit-taking activity weighing on the index.

While there was some positive price action in the glove sector led by Kossan, which had announced estimate-beating earnings, there was a broad-based retreat on the market.

At 9.04am, the FBM KOCI was down 2.98 points to 1,604.98 as the market remained locked in a sideways trading motion.

With investor sentiment dragged down also by the negative performance on Wall Street overnight, the market looks likely to turn back towards the 1,600 point mark.

However, Malacca Securities Research says the local bourse may be supported by buying interest in high earnings certainty stocks ahead of the earnings season.

“With firmer CPO prices, traders may pile into the plantations sector.

“Besides, we expect to see buying interest spilling over to other glove counters following Kossan’s record high earnings released yesterday amid rising daily Covid-19 confirmed cases.

“Building materials-related stocks are also in focus amid the elevated raw materials prices,” it said.

Kossan jumped 24 sen to RM4.04 following the release of its highest-ever quarterly result on the back of the higher average selling prices of gloves.

The performance lifted sentiment in other glove players, including Top Glove, which gained eight sen to RM5.48.

Hartalega climbed 10 sen to RM9.97 and Supermax rose 18 sen to RM5.58.

Dragging on the FBM KLCI however, Press Metal slid 14 sen to RM5.12, Maxis dipped seven sen to RM4.71, Axiata shed five sen to RM3.95 and MISC dropped nine sen to RM6.71.

TransOcean was seen surging 59 sen to RM2.57 as the morning’s leading gainer, resuming a meteoric rally that had begin on April 12.

Top actives were UCrest up three sen to 62.5 sen, Key Asic up 1.5 sen to 22 sen and Sedania rising three sent o 29 sen.