BURSA Malaysia recouped earlier losses to close higher today, with its key index breaching above the 1,600-point level as investors risk appetite improved, dealers said.
Thanks to buying support that emerged during the afternoon session, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) ended 10.98 points higher at an intraday high of 1,602.95, after slipping to a low of 1,572.62 at one point.
On the broader market, losers thumped gainers 889 to 360, while 624 counters were unchanged, 210 untraded and 14 others suspended.
Total volume decreased to 6.54 billion units worth RM5.03 bil from 7.73 billion units worth RM4.41 bil on Wednesday.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said sentiment in the market was affected by the possibility of “circuit breaker” measures or lockdown following the rise in COVID-19 infections.
However, gains from rubber glove and oil and gas counters helped to cushion the slide, he said.
“Rubber glove counters, namely Top Glove, Hartalega and Supermax which constituents of the FBM KLCI index, all ended in the green zone as increasing infections will spark higher demand for rubber gloves.
“Aside from that, a fall in the United States (crude) stockpiles added further support following the unilateral decision by Saudi Arabia, the world’s biggest oil exporter, to cut more output over the next two months.
“This gave a boost to oil and gas stocks such as Dialog Group and Petronas Dagangan,” he said.
Adam said the overall sentiment could have also been influenced by US President Donald Trump’s supporters protesting at the US Capitol on Wednesday, sending it into lockdown, as Vice President Mike Pence refused a demand from the president to cancel his loss to President-elect Joe Biden.
On the local bourse, heavyweights, Maybank and Top Glove improved four sen each to RM8.28 and RM5.80 respectively, Public Bank bagged six sen to RM20.40, Tenaga gained 10 sen to RM10.52, and IHH Healthcare rose 15 sen to RM5.70.
Petronas Chemicals, however, shed five sen to RM7.05. – Jan 7, 2021
