FBM KLCI snaps four-day losing streak as bargain hunting lifts

FBM KLCI snaps four-day losing streak as bargain hunting lifts
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KUALA LUMPUR (July 9): The FBM KLCI finished 0.79% or 11.87 points higher at 1,520.58 points today, snapping a four-day losing streak, as bargain hunting emerges.

MIDF research head Imran Yassin Md Yusof said investors were looking for equities that are deemed to have more attractive valuations now, following the significant sell-off yesterday as concerns over domestic political developments and the lower Dow Jones weighed on sentiment.

“In addition, the political concerns that affected the market appear to have cooled off for the time being,” Imran said, adding political developments that impact the market tend to be short-term in nature as investors ultimately will look at valuations as well earnings in the long run.

Most of the index’s constituents posted gains, with 22 counters rising — led by Top Glove Corp Bhd, Digi.Com Bhd and Telekom Malaysia Bhd. Six declined — led by Hong Leong Financial Group Bhd, Petronas Gas Bhd and Dialog Group Bhd. Two constituents — Hong Leong Bank Bhd and RHB Bank Bhd — closed unchanged.

Market breadth was largely positive, as 659 counters posted gains versus 447 decliners; 322 counters settled unchanged.

Gainers were topped by Kumpulan H & L High-Tech Bhd, Malaysian Pacific Industries Bhd and Widetech (Malaysia) Bhd; losers were led by Carlsberg Brewery Malaysia Bhd, Y&G Corp Bhd and Heineken Malaysia Bhd.

The most active stocks of the day were Serba Dinamik Holdings Bhd, Asdion Bhd and Pegasus Heights Bhd.

Regional markets closed mixed today. The Hong Kong Hang Seng delivered a 0.7% gain to settle at 27,344.54, while the Shanghai Composite was down a marginal 0.04% to 3,524.09. The Nikkei 225 also slid 0.63% or 177.61 points to 27,940.42.

Reuters reported that world stocks largely steadied today and treasury yields bounced, as markets took a cautious breather in the face of fresh concerns over the pace of the world’s economic recovery from Covid-19.

“Markets have been roiled this week, as a rise in cases of the Delta coronavirus variant globally crimped risk appetite and led to a flight to safety as some bet the post-pandemic reflation trade is over for now,” it reported.

Tan Choe Choe