Friday, December 4, 2020

KLCI Down, But Energy Stocks Up On Rising Rude Prices

 The FBM KLCI drifted lower on profit-taking pressure even as energy stocks continued their uptrend amid rising crude oil prices.

At 12.30pm, the key index was down 6.16 points to 1,622.1 as investors took money out of blue chips, including glove counters.

Top Glove was down 15 sen to RM6.63 and Hartalega dropped 16 sen to RM14.50.

Felix Consulting


Supermax, which is due to be included in the FBM KLCI on Dec 21, shed 33 sen to RM8.37.

Meanwhile, banks were bullish with Maybank up three sen to RM8.33, Public Bank gaining six sen to RM18.66, and CIMB adding eight sen to RM3.93.

Oil and gas counters stayed on an uptrend, boosted by the rising prices of crude oil after Opec and its allies agreed to raise production by a smaller amount of 500,000 barrels a day.

Moving forward, despite expectations of profit-taking activities following the strong rally, analysts expect more upsides in light of the economic recovery following the recent progress of the Covid-19 vaccine developments.

With the 1,615 resistance breakthrough, we believe that further upsides are expected to unfold towards the next resistance at 1,640, followed by 1,670," said Malacca Securities Research.


Felix Consluting


In Asian markets, there was slight profit-taking in light of the recent gains.

Moving forward, despite expectations of profit-taking activities following the strong rally, analysts expect more upsides in light of the economic recovery following the recent progress of the Covid-19 vaccine developments.

In Asian markets, there was slight profit-taking in light of the recent gains.

Top Glove Corp Bhd's share price settled up 62 sen or 2.44% at RM26.02 after falling to its lowest so far today at RM24.88.

Hartalega Holdings Bhd cut losses for a six sen or 0.36% drop to RM16.44 after falling to its lowest so far today at RM15.70.

The local market should extend profit-taking consolidation with a mild downward bias, pending return of bargain hunters when rubber glove and healthcare-related stocks stabilize near lower and stronger support levels," TA Securities Holdings Bhd analysts wrote in a note today.

Across Bursa at 12:30pm, 5.82 billion securities worth RM3.4 billion were traded as oil and gas-related counters rose in active trade.

A notable stock was Sapura Energy Bhd, which registered a volume of some 157 million shares. Its share price settled up 0.5 sen or 4.17% at 12.5 sen at 12:30pm today after crude oil prices rose to a five-month high in Tuesday overnight trades.

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