KLCI Stays Afloat Of 1,600, Bank Earnings In Focus

Investors took some cash off the table after yesterday's rally following Parliament's passing of the policy stage of Budget 2021.

At 12.30pm, the FBM KLCI was down 4.14 points to 1,607.97.

However, analysts believe that bullish sentiment has entered the market and is set to continue.

Gainers and losers almost equal 357 to 392, while 876 counters were unchanged, 523 untraded, and 33 others suspended.

Total volume stood at 1.81 billion worth RM892.87 million.

Malacca Securities Sdn Bhd said a consolidation might take charge today, owing to the recent strong strides, with gains likely to be capped towards the immediate resistances at between 1,530 and 1,540.

We expect the 1,500 level to remain well supported at the current juncture, followed by 1,470,” the research firm said in a note today. The research house expects further upsides to coming by towards the immediate resistance of 1,640 and 1,670. It pegged the supports of 1,600 and 1,570.

Among some of the decliners include Maybank, whose earnings performance is due during the lunch break. The bank lost four sen to RM8.15.

Other banks due to announce their earnings results include Public Bank, shedding six sen to RM18.66, and Hong Leong Bank, losing eight sen to RM17.

Banking sectors were on the rise, steered by Public Bank, Maybank, CIMB, Hong Leong Bank, and RHB Bank as the blanket moratorium announced in Budget 2021, which bodes well for banks’ earnings.

However, rubber glove manufacturers, Hartalega and Top Glove were the biggest losers among the index-linked counters, dragging the composited index down with a substantial 22.77 points to the KLCI.

Among other heavyweights, Maybank perked 16 sen to RM7.28, Public Bank rose 72 sen to RM16.02 and Tenaga Nasional Bhd (TNB) bagged eight sen to RM10.34, while Petronas Chemicals shed one sen to RM6.36.

Of the actives, AirAsia X gained three sen to seven sen, Kanger added two sen to 21 sen, while both AT Systematization and Technodex slid 2.5 sen each to 19 sen and 2.1 sen respectively.

However, the FBM Emas Shariah Index fell 177.09 points to 13,155.82, the FBM 70 eased 40.36 points to 14,448.68 and the FBM ACE gave up 208.14 points for 11,167.03.

Sector-wise, the Financial Services Index surged 300.88 points to 12,568.15, the Plantation Index improved 11.94 points to 7,160.67, but the Industrial Products and Services Index slipped 0.33 of a point to 150.92.