9 stocks with momentum at Bursa Malaysia's

Highlighted 19 stocks with momentum at Bursa Malaysia's afternoon close today. One stock showed positive momentum while 18 stocks displayed negative momentum.

The stock with positive momentum was:

Ralco Corp Bhd – up 21 sen at RM1.13

The stocks with negative momentum were:

Bertam Alliance Bhd – up two sen at 16 sen

Cabnet Holdings Bhd – up one sen at 25 sen

Chin Hin Group Property Bhd – up two sen at 88 sen

Cuscapi Bhd – up four sen at 25 sen

Eastland Equity Bhd – up one sen at 14 sen

Fima Corp Bhd – unchanged at RM1.78

Key Asic Bhd – up half a sen at 11 sen

Kia Lim Bhd – up 1.5 sen at 37 sen

KYM Holdings Bhd – up half a sen at 40 sen

Malaysia Smelting Corp Bhd – up 24 sen at RM2.73

Pelikan International Corp Bhd – up 1.5 sen at 38 sen

Pelangi Publishing Group Bhd – up half a sen at 39 sen

Puncak Niaga Holdings Bhd – up three sen at 41 sen

Sapura Industrial Bhd – up 13 sen at 99 sen

Sarawak Cable Bhd – up four sen at 48.5 sen

Scope Industries Bhd – up 1.5 sen at 32.5 sen

Sealink International Bhd – up one sen at 18 sen

Widetech (Malaysia) Bhd – up 37 sen at RM1.62

The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum.

This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher than normal volume and price movements.

The share price may move up or down from this point. But the "+ve" (suggesting a rising price trend on volume) and "-ve" (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell. Note also that momentum generally only persists for a short period of time.

However, each stock has an accompanying fundamental score and valuation score to help readers evaluate the attractiveness of the stocks, if they want to ride the momentum.

Bursa Malaysia Securities Bhd has queried Grand Hoover Bhd due to the sharp rise in the price and volume of shares recently.

At 4.06pm, it was up 40 sen to RM1.76. There were 1.91 million shares done at prices ranging from RM1.47 to RM1.76.

Shares of the property development company had surged from 76 sen on Feb 2.

The regulator advised investors to take note of the company’s reply to the unusual market activity query which will be posted at Bursa Malaysia’s website when making their investment decision.

It directed the company to enquire with its directors, major shareholders and such other relevant persons whether there is any corporate development relating to your group’s business and affairs that has not been previously announced that may account for the trading activity including those in the stage of negotiation/discussion.

It also queried the company whether there was any rumour or report concerning the business and affairs of the group that may account for the trading activity.

KLCI gives up most gains as glove makers retreat

The main index at Bursa Malaysia gave up some of its gains at the midday break today, as glove makers dominated the losers' list.

At 12.30pm, the FBM KLCI was up 1.96 points to 1,580.59. The index had earlier risen to a high of 1,586.06.

Gainers led losers by 463 to 306, while 716 counters traded unchanged. Trading volume was 4.16 billion shares valued at RM2.36 billion.

The gainers included Nestle (Malaysia) Bhd, Tasco Bhd, Seni Jaya Corp Bhd, Press Metal Aluminium Holdings Bhd, Woodlandor Holdings Bhd, Knusford Bhd, Sarawak Consolidated Industries Bhd, Telekom Malaysia Bhd and Techbond Group Bhd.

The actively trade stocks included Dagang NeXchange Bhd, Luster Industries Bhd, Trive Property Group Bhd, AT Systematization Bhd, Pasukhas Group Bhd, HB Global Ltd, Yong Tai Bhd and Sanichi Technology Bhd.

The decliners included Hartalega Holdings Bhd, Supermax Corp Bhd, KESM Industries Bhd, Top Glove Corp Bhd, See Hup Consolidated Bhd, Amtel Holdings Bhd, Genetec Technology Bhd and Kosssan Rubber Industries Bhd.

Reuters said Asian shares hovered near record highs today while oil edged closer to US$60 a barrel on hopes a US$1.9 trillion Covid-19 aid package will be passed by US lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally.

MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.3% at 717.2 after climbing as high as 730.16 late last month, it said.

Hong Leong IB Research said tracking the rally on Wall Street and the allowance of all economic sectors to open (with tightening standard operating procedures) coupled with the road map of Malaysia's National Immunisation Plan, KLCI could still retest the stiff 1,600 psychological barrier in this Chinese New Year holiday-shortened week.

"However, further gains are likely to be capped amid elevated Covid-19 infections and the start of the February reporting season.

"Given the potential for volatility, a balanced portfolio remains appropriate.

"Hence, we would adopt a more balanced approach in our top picks with a combination of recovery plays, volatility, defensives, value and sold down pandemic beneficiaries," it said.

Parlo: Business not affected by the Myanmar coup

Parlo Bhd, a tourism management and service company, pointed out that the global migration service business is not affected by the Myanmar coup.

Executive Director Zheng Liansheng pointed out that as the situation remains stable and calm, there is no sign that the government's migration policy will change, and the company's business remains as usual.

In October last year, the company signed a final agreement with Myanmar Diamond Palace Group of Companies Ltd to provide tourism, ground handling, dormitories and medical inspections for migrant workers departing and returning from Myanmar.

Since the coup d'etat was launched on February 1, Myanmar is currently under the control of the military and is in a state of emergency.

Zheng Liansheng said in a statement today: "Nevertheless, we believe that migrant workers, who are often the only breadwinner of the family, will continue to work abroad and continue to take care of their families."

At the same time, Diamond Palace Chairman Datuk Thein Than assured that migrant workers working outside Myanmar and those planning to work overseas will not be affected by the current situation in the country.

"They have made great contributions to Myanmar through foreign exchange remittances."

He added: "At the micro level, this has a positive effect on the health care, entrepreneurship, education and overall economic development of the recipient family."

Top Glove to vaccinate all staff once Covid-19 vaccine made available

Top Glove Corporation Bhd has pledged to vaccinate all its staff, including foreign workers, once the COVID-19 vaccine is made available.

Executive chairman Tan Sri Dr Lim Wee Chai said this is to ensure uninterrupted production for the long-run besides making sure the good physical and mental health of its employees in order to achieve good financial health of the company.

"We are still waiting for the vaccine from the government and we will be more than happy to get our staff vaccinated as we have over 21,000 employees at 47 factories and 750 production lines as at December 2020,” he said in a virtual courtesy call with High Commissioner of Bangladesh Golam Sarwar and Labour Counsellor of Nepal Embassy Deepak Dhakal, today.

Lim said to enhance the foreign workers' welfare, the company has continuously invested in better accommodation at its facilities in Selangor, Perak, Kedah, Negeri Sembilan, Kelantan, and Johor for its mid-term plan with a capital expenditure of RM195 million.

"We are building and purchasing new workers’ hostels, fully equipped with facilities and amenities that are expected to be completed by 2023,” he said.

Besides that, he said the company is targeting to become a Fortune Global 500 company by 2030 with its growth to be 10 times bigger, achieving US$30 billion sales revenue and scaling up to 150 factories with 100,000 employees.

"This long-term plan could be achieved through technology and innovation, research and development, as well as artificial and human intelligence, supported by 10,000 global talents, researchers and young university graduates,” he added.

Meanwhile, Sarwar hopes Top Glove would continue to ensure the health and wellbeing of its employees, particularly foreign workers, and ensure that they are protected and vaccinated, especially during the unprecedented time of COVID-19 pandemic.

Top Glove’s net profit surged over 20 times to RM2.38 billion in the first quarter of financial year 2021 ended Nov 30, 2020 (Q1FY21) from RM111.43 million in Q1FY20.

The glove giant was previously embroiled in issues relating to workers’ wellbeing and non-compliance with the Workers' Minimum Standards of Housing and Amenities Act 1990 (Act 446).

The company also made headlines after it became Malaysia’s biggest COVID-19 cluster, the Teratai Cluster.

At 3 pm, shares of Top Glove rose 0.45 per cent to RM6.67. - Bernama

KLCI rebounds, enroute to ending losing streak

The FBM KLCI made a rebound on Wedneday after yesterday's rally fizzled to end on a negative note for the eighth straight session.

At 12.30pm, the key index had added 12.57 points to 1,587.88, still firmly below the 1,600-point psychological resistance.

However, there is expectation of an advance in certain sectors moving forward, says Malacca Securities Research.

"Based on some corporate earnings results announced yesterday. we expect plantation and consumer electronics stocks to perform well in the near term.

"Also, market players will be watching out for the technology sector as they performed a swift recovery after the selldown," it said.

Heavyweights seeing positive price action included Axiata rising 17 sen to RM3.42, Maybank up 10 sen to RM7.92, Tenaga Nasional gaining 14 sen to RM9.84 and Petronas Chemicals rising 10 sen to RM6.85.

It offset profit-taking in Hartalega, falling 22 sen to RM12.22, Supermax shedding 15 sen to RM6.50 and Top Glove dropping one sen to RM6.19

Top actives on the broader market were MPI up 56 sen to RM32.96, Carlsberg adding 52 sen to RM21.72 and KESM climbing 50 sne to RM16.50.

Asian markets were generally cautious on Wednesday ahead of the US Federal Reserve's monetary policy decision.

Japan's Nikkei was up 0.25% while China's composite index was mostly flat.

SOuth Korea's Kospi was down 0.2% and Hong Kong's Hang Seng rose 0.2%. Australia's ASX200 fell 0.7%.

Appeal allowed against Taman Rimba Kiara Development project

 PUTRAJAYA (Jan 27): The Court of Appeal today allowed an appeal brought by the residents association of Taman Tun Dr Ismail against the government’s plan to develop the Taman Rimba Kiara (TRK).

Court of Appeal Judge Datuk Mary Lim Thiam Suan deemed the High Court's dismissal of their judicial review to challenge the approval for the development at TRK an appealable error which calls for the intervention of the appellate court.

“This is an appealable error that warrants and appellate intervention,” she said.

In doing so, she set aside the High Court’s decision on Nov 28, 2018 which dismissed the residents’ bid to stop the proposed mixed development project in Taman Rimba Kiara.

The other members of the three-judge bench are Datuk Has Zanah Mehat and S Nantha Balan.

In 2014, Yayasan Wilayah Persekutuan (YWP) entered into a joint venture with Memang Perkasa Sdn Bhd, a subsidiary of Malton Bhd to develop a 25-acre site at TRK. TTDI residents had protested against the proposed eight blocks of high-end serviced apartments and one block of affordable housing apartments which had gained conditional planning permission and development order by DBKL.

Following protests by TTDI residents, the then federal territories minister Khalid Samad had proposed a scaled-down development plan to
four blocks of serviced apartments and 204 affordable housing units.

Petronas Chemicals, Top Glove down as ringgit strengthens

 Petronas Chemicals Group Bhd, Top Glove Corp Bhd and Supermax Corp Bhd settled lower at Bursa Malaysia’s afternoon break today as a strengthening ringgit against the US dollar led to expectation that export-based companies' US dollar-based revenue will be less in ringgit terms.

At 12:30pm today, Top Glove’s share price fell eight sen or 1.3% to RM6.06, Supermax settled down 10 sen or 1.58% at RM6.21 while Petronas Chemicals dropped 18 sen or 2.39% to RM7.36.

At a glance, these FBM KLCI constituents were among KLCI stocks which had a profound impact on the 30-stock index's trading dynamics earlier today when the gauge fell below 1,600 points.

At 12:30pm, the KLCI settled down 3.37 points or 0.21% at 1,598.17 after rising to its highest so far today at 1,615.22.

In currency markets, the ringgit appreciated to its strongest point against the US dollar so far today at 4.0295 after the exchange rate closed at 4.0435 yesterday.

Today, the exchange rate was between 4.0295 and 4.0430.

The ringgit’s strengthening today was seen to be broad-based against global currencies after Bank Negara Malaysia’s Monetary Policy Committee decided yesterday to maintain the overnight policy rate at 1.75%,

Compared to the Singapore dollar today, the ringgit strengthened to 3.0465 at the time of writing.

Against the euro, the ringgit appreciated to 4.8923.

The ringgit’s strengthening today was seen to be broad-based against global currencies after Bank Negara Malaysia’s Monetary Policy Committee decided yesterday to maintain the overnight policy rate at 1.75%,

Compared to the Singapore dollar today, the ringgit strengthened to 3.0465 at the time of writing.

Against the euro, the ringgit appreciated to 4.8923.

The ringgit strengthened against a weaker US dollar. It was reported that the US dollar declined versus major peers on Thursday as optimism that the new US administration's massive stimulus package will bolster growth sapped demand for safe-haven currencies.

It was reported that riskier commodity currencies were supported as Asian stocks followed US equities in rising to new records after Joe Biden, who has laid out plans for a US$1.9 trillion pandemic relief package, was sworn in as president.

"Risk sentiment is quite positive right now and we expect it to remain so this year, with growth expected to rebound quite strongly,” Reuters quoted Shinichiro Kadota, senior currency strategist at Barclays Capital in Tokyo, as saying.

AirAsia's digital platform eyes more airline partnerships

Malaysian budget carrier AirAsia Group’s travel, e-commerce and fintech unit airasia.com is in partnership talks with several Middle Eastern and European airlines, its chief executive said on Wednesday.

Airasia.com CEO Karen Chan said the company was working on selling more flights on the online platform.

"Apart from just selling AirAsia flight tickets, we are now selling any airline's flights tickets. We are now in serious discussions with quite a few full-service carriers," Chan said at a CAPA — Centre for Aviation event.

She said the company was working closely with Middle Eastern airlines to drive traffic to pilgrimage destinations.

"Religious travel has taken a huge delay, and already we are getting a lot of requests from customers for pilgrimages," she said.

Airasia.com was also in talks with some European airlines, she said. "Once international borders are open, all of us are banking on pent-up demand," she said without providing details.

Last November, airasia.com announced a strategic partnership with Turkish Airlines for cross-promotion of its flight inventory with AirAsia flights, and offered travel itineraries with discounted fares.

"Now we can pull their content and inventory onto airasia.com's platform," Chan said. The company offers more than 15 lines of products online and via its super-app "to fly, to stay, to shop, to eat", an earlier media statement showed.

With the airline business taking a hit from the coronavirus pandemic, AirAsia Group last year rebranded its digital arm as AirAsia Digital, which houses airasia.com.

Malaysia's flagship budget airline AirAsia Group said last September it is considering raising capital to expand its digital business.

KLCI down 0.78% as banking stocks drag, US equity futures slip

Source - Edgemarkets

The main index at Bursa Malaysia was down 0.78% at the midday break on Wednesday as banking stocks dragged against the backdrop of slipping US equity futures.

At 12.30pm, the FBM KLCI was down 12.32 points to 1,596.03.

Market breadth was tepid with 469 losers and 253 gainers, while 726 counters traded unchanged. Trading volume was 3.88 billion shares valued at RM2.19 billion.

The top losers included Nestle (Malaysia) Bhd, Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Hong Leong Financial Group Bhd, Petronas Dagangan Bhd, Hong Leong Bank Bhd, Greatech Technology Bhd and Malaysian Pacific Industries Bhd, CIMB Group Holdings Bhd, Malayan Banking Bhd, Public Bank Bhd and RHB Bank Bhd.

The actively traded stocks included Iris Corp Bhd, Vortex Consolidated Bhd, DGB Asia Bhd, Yong Tai Bhd, Bumi Armada Bhd, Sapura Energy Bhd and Puncak Niaga Holdings Bhd.

The gainers included Kobay Technology Bhd, Toyo Ventures Holdings Bhd, Gets Global Bhd, IQ Group Holdings Bhd, Pharmaniaga Bhd and KPower Bhd.

Bloomberg said US equity futures slipped with Treasuries on Wednesday as votes were counted in key elections in Georgia that could have implications for President-elect Joe Biden's agenda.

Asian stocks were little changed, it said.

Hong Leong IB Research said in the absence of immediate-term drivers, KLCI may continue to extend consolidation (weekly supports: 1562-1575; resistances 1618-1638), as investors digest more news flow about the resurgence of Covid-19 pandemic, vaccine distributions and challenges faced by nations in vaccinating their citizens coupled with the resumption of RSS.

"Nevertheless, optimism on economic recovery amid the multiple Covid-19 vaccine breakthroughs, a combination of continuing fiscal and monetary stimulus, the low-interest rate environment and China's firmer economic recovery will continue to underpin interests in the equity market.

"Meanwhile, surging oil prices, soybean prices and FCPO may provide some trading interests among the O&G and plantation stocks," it said.

Top Glove commits to special dividend of 20%

 

The world’s largest glove maker said the special dividend was in addition to its existing dividend policy of a 50% dividend payout ratio on its profit after tax and minority interests for the second, third and fourth quarters of financial year 2021.

MAINBOARD-LISTED Top Glove Corporation has committed to a special dividend of 20 per cent, in addition to its existing dividend policy of a 50 per cent payout ratio on profit after tax and minority interests (PATMI).

The total 70 per cent dividend payout ratio on PATMI will be applicable for the second quarter to the fourth quarter of FY2021, the Malaysia glove maker said in a bourse filing on Monday.

This is in consideration of its "good profit performance and strong cash flow", as well as to reward shareholders, Top Glove said.

At 3.47pm, it was trading at RM5.65, down 47 sen with nearly 320 million shares done.

It hit an early low of RM5.23.

The FBM KLCI was down 18.90 points or 1.16% to 1,608.32. Turnover was 6.04 billion shares valued at RM4.85bil.

Decliners hammered advancers 1,000 to 289 while 307 counters were unchanged.

Top Glove and other glove makers fell sharply in early trade, triggered by the upliftment of the temporary suspension of regulated short selling (RSS) by the Securities Commission (SC) and Bursa Malaysia Bhd.

Bursa joins Asean markets to end morning weaker

Asean markets slumped on the final trading day of 2020 while at Bursa Malaysia, the FBM KLCI was weighed down by losses in Sime Darby Plantation, Maybank and Top Glove.

At 12.30pm, the KLCI was down 9.04 points or 0.55% to 1,635.37. Turnover was lacklustre at 2.98 billion shares valued at RM2.98bil. The broader market was cautious with 560 losers to 402 gainers and 484 counters unchanged.

China's Shanghai Composite rose 0.83% and Hong Kong's Hang Seng Index added 0.31% while Taiwan's Taiex gained 0.14%. South Korea and Japan markets were closed.

Among Asean markets, Singapore's Straits Times Index slipped 0.89%, Thailand's SET fell 0.86% and Jakarta's Composite 0.95% lower.

Sime Plantation fell 17 sen to RM5 after it was accused of using forced labour prompting the US to ban imports of its palm oil. It erased 1.79 points from the KLCI.

Crude palm oil for third month delivery fell RM11 to RM3,577 per tonne.

KL Kepong lost 20 sen to RM24, IOI Corp was flat at RM4.40 and also unchanged was PPB Group at RM18.86.

Among the banks, Maybank fell five sen to RM8.52 and erased 0.86 of a point, CIMB five sen lower at RM4.33, Hong Leong Bank 18 sen to RM18.38 but Public Bank rose eight sen to RM20.78. Aeon Credit lost 16 sen to RM11.92.

As for glove makers, Top Glove fell seven sen to RM6.05 and erased 0.87 of a point, Hartalega six sen lower at RM12.14 and Supermax three sen to RM5.95. Kossan fell 15 sen to RM4.45.

Get Free Signal for KLSE Makret

Tenaga shed two sen to RM10.50, GentingM three sen to RM2.70 and Genting two sen to RM4.51.

US light crude oil eased three cents to US$48.37 and Brent one cent to US$51.62.

Petronas Chemicals fell five sen to RM7.45, Petronas Dagangan and Petronas Gas unchanged at RM21.40 and RM17.34. Dialog shed two sen to RM3.45.

Toyo Ventures was the top gainer, up 23% ot 39 sen to RM1.69 and its warrants 30 sen to RM79.5 sen.

MPI added 32 sen to RM25.20 and JF Tech 17 sen to RM4.99.

KLCI bucks regional trend, retreats on mild profit-taking activity

The main index at Bursa Malaysia bucked the regional trend and retreated at midday break today on some mild profit-taking activity.

At 12.30pm, the FBM KLCI was down 6.16 points to 1,637.74. The index had earlier risen to a high of 1,645.76.

Losers led gainers by 383 to 326, while 803 counters traded unchanged. Trading volume was 5.13 billion shares valued at RM2.28 billion.

The losers included Hartalega Holdings Bhd, Fraser & Neave Holdings Bhd, Supermax Corp Bhd, Greatech Technology Bhd, DKSH Holdings (M) Bhd, Batu Kawan Bhd, Top Glove Corp Bhd, JF Technology Bhd and Sarawak Consolidated Industries Bhd.

The actively traded stocks included Mestron Holdings Bhd, Iris Corp Bhd, AT Systematization Bhd, Puncak Niaga Holdings Bhd, Kanger International Bhd, Melewar Industries Bhd, Hiap Teck Venture Bhd and Sarawak Cable Bhd.

The gainers included Nestle (M) Bhd, CN Asia Corp Bhd, Carlsberg Brewery Malaysia Bhd, KESM Industries Bhd, Aeon Credit Service (M) Bhd and Petronas Gas Bhd.

Bloomberg said most Asian stocks rose with US and European futures Tuesday after the House backed higher stimulus checks following President Donald Trump’s signing of the virus relief bill.

The US dollar slipped with Treasuries, it said.

Inter-Pacific Research Sdn Bhd said Malaysian equities were mostly rangebound yesterday after giving up most of their intraday gains on quick profit-taking activities.

In its daily bulletin today, the research house said that for the most part, however, the market’s condition was indifferent due to the lack of direction and relatively light participation, even as it was an improvement over the previous session.

Nevertheless, it said market breadth was positive as retail players took the opportunity to trade on some of the laggards in the calmer market condition.

Inter-Pacific Research said it sees the mild bargain-hunting activities continuing over the near term, buoyed by the positive overnight performances of key global equity indices that rode on the US President’s signing of an economic stimulus package.

“This could allow the key index to build on the gains attained yesterday as we also think that rotational buying could pick up following the recent market consolidation.

“However, with market participation still on the thinner side, we also think that the gains may be modest with end-of-day profit-taking actions possibly limiting the upsides.

“As such, the 1,650 level continues to be the immediate hurdle, followed by the 1,660 level. The supports, on the other hand, are at 1,640 and 1,631 respectively.

“Conditions on the broader market are also looking positive with retail players continuing to nibble on selected lower liners that could provide more near-term impetus for these stocks to gain ground. As it is, retail players are positioning their portfolio for further upsides at the start of the new year, riding on hopes for an improved corporate earnings recovery in 2021,” it said.

FBM KLCI charges ahead, up 15 points

 

KUALA LUMPUR: Gains from index-linked counters propelled the FBM KLCI to close higher alongside with the positive sentiment across the regional market on Wednesday.

At 5pm, the 30-stock index rose 15.58 points or 0.95% to 1,647.50 after opening 0.63 of-a-point lower at 1,631.55 this morning.

The market traded within a range of 25.06 points between an intra-day high of 1,652.59 and a low of 1,627.53 during the session.

Market breadth turned positive as gainers overpowered the losers on a ratio of 841-to-355 stocks. Traded volumes stood at 6.3 billion shares valued at RM3.41bil.

KLCI-component stocks were overwhelmingly in the positive, with 22 gainers, four decliners and four counters unchanged.

Dealers said sentiment was supported also by firmer key regional markets and local bourse was playing catching up after the recent bout of weakness.

Among the gainers, Heng Yuan rose 69 sen to RM5.69, KPower added 61 sen to RM6.55, Carlsberg gained 56 sen and Greatech advanced 52 sen to RM9.20.

KESM was the top loser on Bursa Malaysia, shedding 98 sen to RM12.30. F&N fell 94 sen to RM31.54, Petronas Gas declined 18 sen to RM17.30 and Supermax lost 13 sen to RM6.92.

Meanwhile, the ringgit was quoted at 4.0630, down 0.05% against the US dollar. The local currency was up 0.18% against the euro at 4.9528. It also declined 0.02% against the pound sterling at 5.4541 and down 0.18% against the Singapore dollar at 3.0475.

Brent crude futures fell 17 cents, or 0.34%, to US$49.91 a barrel while US West Texas Intermediate (WTI) crude futures slid 18 cents, or 0.38%, to US$46.84 a barrel.

Asia benchmark finished mostly higher today with Japan’s Nikkei 225 Index rose 0.33% to 26,524.79.

South Korea’s benchmark Kospi rose 26.14 points, or 0.96%, to 2,759.82, the sharpest daily gain since Dec 9, Reuters reported.

China’s Shanghai Composite index was up 0.76% at 3,382.32, while the blue-chip CSI300 index was up 0.85%.

Reuters reported that China's central bank will scale back support for the economy in 2021 and cool credit growth, but fears of derailing a recovery from a pandemic-induced slump and debt defaults are likely to prevent it from tightening any time soon, policy sources said.

ESG concerns take some shine off Top Glove

 

ANALYSTS remain positive on Top Glove Corp Bhd despite the environmental, social and governance (ESG) concerns that have emerged over the glove maker’s staff living quarters.

While they imputed a discount on their target prices for Top Glove because of this, most of the analysts have maintained their bullish calls on the company following the release of its results for the first quarter ended Nov 30 (1QFY2021) — it posted a record net profit of RM2.38 billion on its highest ever quarterly revenue of RM4.76 billion.

RHB Investment Bank, for example, has maintained its “buy” call on Top Glove but ascribed a 10% ESG discount to its target price and cut its ESG score for the group to 2.78 (from 3.22) on lower points for the Social or “S” component.

CGS-CIMB, while maintaining its “add” call, has cut its target price on the rubber glove giant by 11% to RM8.90 per share from RM10 previously. The cut was premised on a lower price-to-earnings ratio of 16 times for calendar year 2022 from 17 times previously to account for ongoing concerns over the ESG issues, particularly in relation to its foreign workers.

Maybank Investment Bank’s target price of RM8.65 for Top Glove assumes a higher weighted average cost of capital as it takes into consideration the social compliance issues.

Meanwhile, the Employees Provident Fund (EPF), which emerged as Top Glove’s substantial shareholder on Sept 21 with a 5.05% stake, has been trimming its shareholding in the glove maker. According to Top Glove’s filing with Bursa Malaysia on Dec 10, EPF sold 1.5 million shares on Dec 7, leaving the pension fund with a 5.56% direct stake comprising 445.65 million shares in Top Glove. Since Dec 1, EPF has divested a total of 22.14 million shares in the company.

Industry observers believe ESG concerns may be the main reason for EPF’s divestment of Top Glove shares.

Weak sentiment continues to weigh on KLCI at midday

Worries over a new strain of Covid-19, coupled with weak oil prices, continued to weigh on investor sentiment, dragging Bursa Malaysia to end the morning session broadly lower.

At the lunch break, the benchmark FBM KLCI was 16.94 points or 1.03% lower at 1,630.95 after moving between 1,627.22 and 1,647.36 throughout the morning session.

The overall market breadth was negative with losers overtaking gainers 989 to 232, while 375 counters were unchanged, 541 untraded and 17 others suspended.

Volume stood at 5.45 billion units worth RM2.65 billion.

Malacca Securities Sdn Bhd said in a note that the negative sentiment from the new virus strain might spill over to stocks on the local front.

The research firm expected trading interest to revolve around construction and building materials as well as property sector amid the potential Kuala Lumpur-Singapore High Speed Rail (HSR) news flow coupled with the rising building material prices.

“Also, we expect the vaccine distribution candidate may surface as the health minister stated that [the government] will try to get all the vaccine supplies by the first quarter of 2021,” it said.

Among the heavyweights, Malayan Banking Bhd (Maybank) and IHH Healthcare Bhd fell 11 sen each to RM8.37 and RM5.64 respectively, Public Bank Bhd lost 18 sen to RM20.48, Tenaga Nasional Bhd (TNB) erased 10 sen to RM10.58 and Petronas Chemicals Group Bhd (PetChem) declined 21 sen to RM7.33.

However, Top Glove Corp Bhd rose one sen to RM6.63 and Hartalega Holdings Bhd gained six sen to RM12.56.

Among the actives, Techna-X Bhd trimmed two sen to 14.5 sen, Iris Corp Bhd added one sen to 40 sen, Bintai Kinden Corp Bhd increased 9.5 sen to 76 sen, and Vivocom Intl Holdings Bhd fell nine sen to 89 sen.

On the index board, the FBM Emas Index was 132.55 points lower at 11,716.27, the FBMT 100 Index lost 128.07 points to 11,486.1, the FBM Emas Shariah Index erased 106.12 points to 13,180.42, the FBM 70 contracted 201.01 points to 14,957.31, and the FBM ACE reduced 45.22 points to 10,433.23. 

The Industrial Products and Services Index shrank 2.69 points to 172.27, the Plantation Index gave up 47.26 points for 7,310.93 and the Financial Services Index dropped 224.0 points to 15,159.58.

Meanwhile, Bursa in a statement announced the transfer of Greatech Technology Bhd's shares from the ACE Market to the Main Market under the technology sector.

In a statement, it said the transfer would take effect on Dec 28, 2020 at 9am.

KLCI extends profit-taking as year-end approaches

KUALA LUMPUR: The FBM KLCI ended Monday on a negative note, its third straight day of losses as profit-taking continued ahead of the year-end holiday season and fears of a new strain of coronavirus threatened the global recovery outlook.

At 5pm, the key index ended 4.6 points lower at 1,647.89, after having lost over 10 points earlier in the day.

Trading volume was 8.09 billion shares valued at RM3.67bil. Market breadth was negative with 848 decliners compared to 394 gainers.

An analyst speaking to StarBiz said the profit-taking in recent days was owing to thinning liquidity ahead of the coming festivities, especially after a strong rally in November.

Meanwhile, he believes that the euphoria surrounding the roll out of the Covid-19 vaccines could have been priced in for the short term.

"November and December data are starting to reflect the recent spike in Covid-19 cases and impact from targeted lockdown reimplementation," he added.

Over the next two days, the price action in the market could signal bullish investors' sentiment as seen during 2018's year-end rally.

"While investors had turned positive in 2018 due to the Fed's dovish turn on interest rates, market participants could similarly be energised by the US$900bil US fiscal stimulus this time around.

"On the flipside, given the already elevated share prices, market players could stay on the sidelines until 1H 2021," he said.

Bank stocks, which have been a driver of the market's rally earlier in the week, were seen mixed amid the broader retreat.

Maybank was up two sen to RM8.48, Public Bank rose two sen to RM20.66, CIMB dropped eight sen to RM4.30 and Hong Leong Bank was flat at RM18.58.

Global stocks were also seen stumbling on news that UK and other parts of Europe could face new lockdown measures following the discovery of a fast-spreading strain of the coronavirus.

The prospect of new economic shutdowns offset the news that US policymakers had reached a deal for a US$900bil relief package, resulting in mixed results in Asian markets.

MSCI index of Asia-Pacific shares ex-Japan slipped 0.2% after hitting successive new highs last week.