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KLCI bounces amid ongoing uncertainty

KUALA LUMPUR: The FBM KLCI bounced back from its sell-off yesterday as glove counters edged cautious higher amid reports of a resurgence of Covid-19 in European markets.

At 12.30pm, the FBM KLCI rose 6.96 points to 1,506.39.

Trading activity on the market remained subdued as the recent volatility kept investors on the sidelines. Volume on Bursa Malaysia was 3.48 billion shares valued at RM2.01bil.

Top Glove gained three sen to RM8.03 and Hartalega partially offset previous-day losses by rising 10 sen to RM14.10 as European policymakers suggested more movement restriction lay ahead given the rising number of coronavirus cases.

Other heavyweights helping to lift the market included Tenaga adding 18 sen to RM11.08 and Public Bank rising 16 sen to RM15.84.

The recovery on Bursa Malaysia came in contrast to the steep sell-off in US markets as anxieties grew over an impasse in Congress that has delayed stimulus measures.

Coming under pressure, the Dow Jones fell over 500 points or 1.8% overnight amid a rout in technology and financial counters

However, analysts expect the downtrend bias on the FBM KLCI to continue given the bearish sentiment.

“The uncertainty in both domestic and overseas political avenue, rising number of Covid-19 cases and toppish market condition is likely to weigh on the local bourse performance,” said Malacca Securities Research.

Meanwhile, top active counters on Bursa Malaysia included Bintai Kinden jumping 9.5 sen to 73 sen, DGSB adding one sen to 18.5 sen and Lambo unchanged at four sen.

In other Asian markets, Japan reopened for business after an extended weekend with the Nikkei rising 0.2%. In China, the Shanghai composite index fell 0.1% and Hong Kong’s Hang Seng was down 0.3%. South Korea’s Kospi slumped 2% while Australia’s ASX200 dropped 0.6%.

Reference