PETALING JAYA: Amid the positive market momentum, 54 companies hit their 52-week highs yesterday on Bursa Malaysia.
A large number of companies across the board also hit the limit up, with their share prices gaining more than 30%. At 12.30pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) added 5.39 points to 1,505.69 after opening at 1,501.08.
On the overall market, gainers continued to dominate at 591 versus 336 losers, while 412 counters were unchanged, 757 untraded, and 20 others suspended. Market volume stood at 364.92 million worth RM2.55 billion.
Volume hit a fresh record high at 16.68 billion shares worth RM8.56bil, compared with Wednesday’s 15.57 billion shares worth RM8.26bil. The market breadth was positive with 716 gainers outnumbering 468 losers.
While the index posted its fourth consecutive month of gain in July, driven by strong liquidity and the rally of glove stocks on expectations of positive earnings momentum, the month of August could see some volatility as the market braces for profit-taking activities.
On the main index, 18 heavyweight counters recorded gains, led by Top Glove which rose 23 sen to RM8.99, while IHH gained seven sen to RM5.07 and Hartalega added eight sen to RM17.58.
The health-related index also dominated the active market, with the majority of Supermax’s warrants leading the way, followed by Kossan Rubber which jumped 46 sen to RM15.08, while technology player UWC leaped 43 sen to RM6.43.
On the index board, the FBM Emas Index rose 65.66 points to 10,887.36 and the FBM Emas Shariah Index appreciated 104.61 points to 13,026.24.
The low volatility suggests that a big move may be just around the corner. The FBM KLCI’s most recent failure last week to kick beyond the 1,617 resistance level and the triple-negative divergence on its momentum indicators, coupled with the fact that the market has been held up by retailers (in 11 of the past 16 trading days, this group of market participants was the major buyers), we believe the market is due for a correction sooner rather than later the currency market front, the ringgit had been strengthening of late likely due to investor expectations that Malaysia is handling the Covid-19 situation better than thought.
Analysts at Maybank Research said in a report the US dollar-to-ringgit pair looked on track to test lower. The FBM 70 gained 169.60 points to 14,368.58, the FBMT 100 Index improved 60.96 points to 10,711.16, while the FBM ACE was 125.51 points higher at 10,129.39.
Further downside amid a new 4.15–4.25 range is likely but not without risks. Developments on US-China trade talks, Covid-19 second wave risks, and the US fiscal stimulus outcome are some risks to keep in view. Sector-wise, the Financial Services Index added 4.08 points to 12,383.61, the Plantation Index was up 26.36 points to 6,933.17, while the Industrial Products and Services Index was 0.82 of-a-point stronger at 137.30. — Bernama
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