KLCI bounces higher ahead of final Budget vote

The FBM KLCI closed up 3.73 points or 0.23% at 1,597.48 today to trail Bursa Malaysia’s Energy index’s 5.55% gain as the Brent crude oil price rose past the US$45 (RM184.07) per barrel level following news of successful Covid-19 vaccine trials. 

The KLCI’s gain was, however, limited by investors' caution ahead of Malaysia's parliamentary voting on the proposed Budget 2021 on Wednesday (Nov 25), according to analysts.

Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com that higher crude oil prices lifted sentiment on the local bourse and helped the KLCI close in positive territory today. 

Across Bursa today, 9.43 billion securities were traded for RM4.52 billion as oil and gas (O&G)-related shares rose among the top gainers.

Petronas Dagangan Bhd topped the gainers' list after its share price closed up RM2.48 or 12.64% at RM22.10.

Hengyuan Refining Company Bhd was up 32 sen or 10.22% at RM3.45, while Petron Malaysia Refining & Marketing Bhd gained 23 sen or 6.07% to RM4.02.

Notable gainers included Asia Brands Bhd after the lingerie and baby product retailer’s share price closed up 30 sen or 61.22% at its intraday high of 79 sen.

Asia Brands’ share price rose today after the company announced last Friday that its net profit jumped to RM5.35 million for the second quarter ended Sept 30, 2020 (2QFY21) from RM1.32 million a year earlier. For the first half ended Sept 30, 2020 (1HFY21), Asia Brands said its cumulative net profit climbed to RM9.58 million from RM5.91 million a year earlier.

Globally, it was reported that crude oil prices extended gains today as traders eyed a recovery in crude demand, thanks to successful coronavirus vaccine trials, although prices were contained by renewed lockdowns in several countries.

It was reported that sentiment was also bolstered by hopes that the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, will keep crude output in check. It was reported that Brent crude futures were 21 cents, or 0.5%, higher at US$45.17 a barrel by 0436 GMT, while US West Texas Intermediate (WTI) crude had gained 10 cents, or 0.2%, to US$42.52 a barrel.

Bursa, SZSE displaying selected mutual benchmark indices

Bursa Malaysia Bhd and the Shenzhen Stock Exchange (SZSE) have started displaying selected mutual benchmark index constituents of their respective markets on the websites of both exchanges today.

Bursa chief executive officer Datuk Muhamad Umar Swift said the strategic relationship formed with SZSE has taken a significant step forward — offering a convenient platform and starting point for investors wanting to learn more about Malaysia’s market.

It will also provide a strong foundation for the development of new instruments for the tradeable index products, he said in a statement today.

“We look forward to continuing the strategic relationship with the SZSE to raise the profile of our markets to both international and domestic investors,” he said.

Bursa’s website will feature SZSE’s flagship indices, namely the Shenzhen Component Index, Shenzhen 100 Index and the ChiNext Index.

These flagship indices will offer investors an opportunity to gain exposure to some of the leading and innovative companies from both the traditional and emerging industries in the Chinese market.

Meanwhile, Malaysian indices that will be displayed on the SZSE website are the CNI-Bursa Malaysia 50 Index, the Bursa Malaysia Healthcare Index and the Bursa Malaysia Technology Index.

Muhamad Umar said that the move will be able to enhance the visibility of Malaysian-listed companies to Chinese investors.

The healthcare and technology sectors are among the best performing sectors in Malaysia this year.

As of November 2020, the Healthcare Index has risen by 221% on Bursa Malaysia, while the Technology Index has increased by 72%.

According to the statement, the CNI-Bursa Malaysia 50 Index — a new index jointly developed by Bursa Malaysia and SZSE — is the first cross-border co-branded index to be displayed on the SZSE.

The index will track the performance of the 50 largest companies listed on Bursa Malaysia, based on the free-float weighted market capitalization under the Shenzhen Securities Information Co Ltd methodology.

Top Glove chairman's turn to buy company shares

After the massive share buy-back exercise undertaken by Top Glove Corp Bhd since September, its chairman Tan Sri Lim Wee Chai has picked up the baton by buying 4.28 million shares in his own capacity.

The shares were bought in two transactions yesterday and today, but the transacted prices were not disclosed in Top Glove's filing with Bursa Malaysia today.

Following the purchase, Lim has a direct interest of 26.13% in the world's largest glove maker, plus an indirect interest of 8.63%.

Top Glove shares today closed up 15 sen or 2.19% at RM6.99, with a market capitalization of RM57.29 billion.

Year-to-date, the counter has risen by over 350%, even after it has shed some of its gains since late October following news of the development of Covid-19 vaccines.

The company has spent about RM1 billion to mop up its own shares since September.

Tropicana Corp Bhd, which is also chaired by Lim, also bought RM78.47 million worth of Top Glove shares last week. Lim has an 11.07% stake in Tropicana.

Due to this transaction, Bursa Malaysia had requested Tropicana to justify the rationale behind the group's purchases of 11.25 million Top Glove shares, given that the business is different from Tropicana's principal activities.

Tropicana responded by saying that the acquisitions were undertaken as part of its investment strategy to capitalise on the potential robust growth of Top Glove. The company said Lim had voluntarily abstained from deliberating and voting for the acquisitions.

KLCI rises for fourth day as banks sustain advance

The FBM KLCI advanced for a fourth straight day as financial stocks continued to put on weight on follow-through buying support.

At 12.30pm the key index was up 6.98 points to 1,653.51 as Public Bank rose another 18 sen to a 17-month high of RM20.04.

Fellow financial heavyweight Maybank was also up four sen to RM8.42 while CIMB added 14 sen to RM4.19.

The early gainers included Fraser & Neave Holdings Bhd, Malaysian Pacific Industries Bhd, Petronas Dagangan Bhd, Petronas Gas Bhd, Hong Leong Bank Bhd, Carlsberg Brewery Malaysia Bhd, Public Bank and Mega First Corp Bhd.

Given the FBM KLCI's rally, there are expectations that the market could retreat on profit-taking as investors digest the gains.

The FBM KLCI may be slightly overbought after the gap-up formation yesterday. Hence, the key index may be due for a mild pullback as healthcare stocks may drag the index today," said Malacca Securities Research.

Other top traded stocks included XOX unchanged at 11 sen and Trive flat at 1.5 sen.

In Asian markets, equities prices eased amid stalled US stimulus talks while a fall in tech stocks on Wall Street raised fears of an impending correction.

China's composite index rose 0.25% and Hong Kong's Hang Seng was down 0.5%. In Australia, the ASX 200 dropped 0.4%.

Bloomberg said Asian stocks pushed higher after strong gains in US equities and bonds, as investors sought out the defensive qualities of technology shares and backed away from bets on a massive economic stimulus package.

Rakuten Trade in its daily market report said Wall Street experienced wild swings in prices amid the ongoing US presidential election results that may lead to the Supreme Court as Trump is staring at a defeat.

As for the local bourse which is more detach from Wall Street, we reckon the FBM KLCI may again test the 1,470 level today to emerge from prevailing consolidation.

Meanwhile, have a look at the plantation stocks as CPO (crude palm oil) prices have been on an uptrend at around the RM3,300/MT of late,” it said.

Trading ideas: Top Glove, MyEG, KPower, TH Plantations

Top Glove Corporation Bhd, My EG Services Bhd, Kumpulan Powernet Bhd and TH Plantations are among the stocks to watch on Thursday following their corporate news, TA Securities Research said.

Top Glove saw another record-breaking performance in 1QFY21 with its net profit surging over 20 times to RM2.38bil from RM111.43mil in Q1 2020.

It is expected to resume operations at all its 28 glove manufacturing plants in Meru, Klang, within the next 2 to 3 weeks, said chairman Tan Sri Dr Lim Wee Chai.

My EG plans to raise up to RM407mil via placement to fund the development of hostels for foreign workers under an ongoing project, develop healthcare-related services, and to buy fixed assets like kiosks for the online renewal of car and motorcycle road tax under its e-government concession business.

Kumpulan Powernet bagged a RM296mil contract for a mini-hydropower plant in Perak from Kangsar Hidro Sdn Bhd. It is optimistic of achieving its order book target of RM2bil by year-end.

AWC Bhd has secured a five-year hospital support services contract from the Health Ministry worth RM107.89mil.

Meanwhile, the government has decided to withdraw the approval of indirect property acquisition by Tamaco Plantation Sdn Bhd from TH Plantations on Dec 4, for further scrutiny and other factors.

Bursa Securities has queried Cymao Holdings Bhd on the sharp rise in its share price and volume recently.

Bukit Hitam Development Sdn Bhd's Bromelia Phase 1 has achieved a take-up rate of 90% since its launch on Dec 8. Bukit Hitam is the property division of Ayer Holdings Bhd.

Source : The Star

 

Cymao Holdings Bhd, which is involved in the manufacturing and sale of plywood products, has been slapped with an unusual market activity (UMA) query on the sharp rise in its share price and volume recently.

Shares of Cymao shot up 26.26% or 13 sen today and settled at 62.5 sen, with 4.78 million shares traded.

The 4.78 million shares that were traded today is five times that of yesterday’s volume of 914,800.

Over the past month alone, the stock's price shot up by 172% from 23 sen on Nov 12. The group currently has a market capitalisation of RM46.9 million.

In a filing today, Bursa asked the company to respond as to whether there is any corporate development relating to its business and affairs that has not been previously announced that may account for the trading activity including those in the stage of negotiation.

Feel good factors lift Bursa, CI rises 50.75 points

BURSA Malaysia extended its winning streak for the fifth consecutive day, with the key index rallying to its three-month high today, thanks to the strong buying momentum in banking-related stocks amid positive sentiment over COVID-19 vaccine, dealers said.

At the close, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 50.75 points or 3.33% to end at its intra-day high of 1,575.07 compared with yesterday’s close of 1,524.32.

May 18 — Bursa Malaysia remained in the positive territory at mid-afternoon, buoyed by feel-good factors such as higher crude oil prices and the re-opening of businesses throughout the globe.

At 3.05pm, benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 10.22 points, or 0.73 per cent to 1,413.66 from 1,403.44 at last Friday’s close.

The index opened 5.95 points firmer at 1,409.39.

Market breadth stayed positive, with gainers edged losers 585 to 335, while 351 counters were unchanged, 604 untraded and 17 others suspended.

A dealer said crude oil prices which surged over $30 per barrel for the first time since March this year, along with the re-opening of businesses across the world had restored investors’ confidence.

As at 3.39 pm, the benchmark Brent crude climbed 3.94 per cent higher at US$33.78 per barrel.

Of the heavyweights, IOI Corp advanced 15 Sen to RM4.14, Petronas Chemicals rose 11 Sen to RM5.67, Digi bagged 10 Sen to RM4.49, Maybank was six Sen better at RM7.46 and Petronas Dagangan increased 48 Sen to RM20.16.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said banking counters rose as the blanket moratorium was not extended under Budget 2021, which bodes well for banks’ earnings.

“With hopes of the vaccine (for COVID-19) remaining high, economic recovery will lead to less non-performing loans and impairments for banks,” he told Bernama.

Among banking heavyweights, Public Bank put on RM1.90 to RM17.20, Maybank surged 54 Sen to RM7.66, Hong Leong Bank increased RM1.48 to RM16.18, CIMB advanced 32 Sen to RM3.38, and RHB Bank bagged 47 Sen to RM4.85.

The uptrend on Bursa was also in line with regional peers’ performance, buoyed by the bullish sentiment stemming from positive data from a large-scale COVID-19 vaccine clinical trial, with a rate of 90 per cent effectiveness, developed by American pharmaceutical giant Pfizer Inc and its partner, BioNTech SE.

On this positive development, Adam said counters related to tourism such as Malaysia Airports, AirAsia Group and AirAsia X were all up by at least 20% as the news of the vaccine gave hope of a revival of the tourism sector. 

Of the actives, AT Systematization shed 2.5 Sen to 19 Sen, AirAsia X earned 2.5 Sen to 6.5 Sen, Kanger inched down half-a-Sen to 18.5 Sen, while Sapura Energy added half-a-Sen to 11 Sen.

On the index board, the FBM Emas Index was 270.84 points firmer at 11,311.03, the FBMT 100 Index advanced 279.85 points to 11,112.59, and the FBM 70 increased 60.05 points to 14,549.09.

However, the FBM Emas Shariah Index decreased 40.15 points to 13,292.76 and the FBM ACE dropped 328.81 points to 11,046.36.

The Industrial Products and Services Index added 3.06 points to 154.31 and the Plantation Index improved 58.86 points to 7,207.59. – Nov 10, 2020

Sector-wise, the Energy Index was 87.32 points firmer at 843.68 and the Financial Services Index increased 66.91 points to 12,334.12.

The Industrial Products and Services Index inched up 1.42 points to 122.30 and the Plantation Index expanded 100.61 points to 6,297.77. 

G Capital and partners set to establish new bank in Cambodia

G Capital Bhd said it has received approval in principle from Cambodia’s central bank to set up a full-fledged commercial bank in the country with other partners.

The group said it has entered into a heads of agreement with two parties — Public Bank Bhd’s Indo-China operations regional head Datuk Phan Ying Tong and Cambodian firm E S Packaging Co Ltd — to jointly undertake the venture.

"Specifically, the HoA has been structured to outline the preliminary undertakings and obligations of the parties with a view to enter into legally binding definitive agreement between the parties to establish ‘Oriental Bank Plc’,” the group said in a filing with Bursa Malaysia.

G Capital said it will hold not less than 20% of the issued shares of the new company, while Phan will have a 51% stake and E S Packaging a 20% stake. The balance 9% interest will be held by an additional investor to be identified by Phan or E S Packaging. 

G Capital said subsequent to obtaining the approval-in-principle from the National Bank of Cambodia, Oriental Bank can now be formally registered with Cambodia's Ministry of Commerce. 

According to the group, the financial health of Cambodia has shown steady growth and its banking sector has emerged as one of the most robust industries set on making healthy profits. 

"G Capital envisages that in the long term, its equity participation in the banking sector will significantly strengthen its financial standing and broaden its presence throughout the region," it said.  

G Capital, formerly known as Gunung Capital, is principally involved in the provision of charter services with a fleet of land-based passenger transportation assets and specialty vehicles.  

Shares of G Capital rose one sen or 0.76% today to close at RM1.33, with a market capitalization of RM404.04 million. 

Oil Prices Jump And Stocks Slide On Escalating US-Iran Tensions

Bursa Malaysia's Energy Index, which tracks oil and gas-related shares on the local bourse, pulled back today from its all-time high amidst concerns about an escalation of tensions between the United States and Iran.

At 10.30am, the Energy Index was one of the only three sub-indices in red and the largest index decliner across the local bourse, down 1.46% or 18.81 points at 1,272.44. The benchmark FBM KLCI, in comparison, was up 0.91% or 14.48 points at 1,612.24.

Energy-related counters continued to take up Bursa's top active list today.

Alam Maritim Resources Bhd, which closed near its two-year high on Monday, was the most actively traded counter with some 90 million shares done at the time of writing. The stock fell half a sen or 2.7% to 18 sen, for a market capitalization of RM193.53 million.

Similarly, Sapura Energy Bhd edged down half a sen to 28.5 sen, while Hibiscus Petroleum Bhd lost three sen or 2.86% to RM1.02.

Oil prices jumped while global stocks fell on Friday after the US killed a top Iranian military commander in an airstrike, shoving geopolitics to the top of investors’ agenda for the new year.

Brent crude jumped 3.5 percent to more than $68 a barrel, putting the international oil benchmark on track for its biggest gain in a month.

US stocks dropped as the S&P 500 slid 0.7 percent — though better than a fall of 1.1 percent in early morning trading. The Dow Jones Industrial Average and Nasdaq Composite also clawed back a portion of their losses in afternoon trading and were each down 0.8 percent.

Similarly, Sapura Energy Bhd edged down half a sen to 28.5 sen, while Hibiscus Petroleum Bhd lost three sen or 2.86% to RM1.02.

Oil prices edged lower on Tuesday, coming off their highest levels in months, as markets await Iran's response to the killing of its top military commander by the US.

It had on Monday spiked to trade in the neighborhood of US$70 per barrel, a price not seen since last September, on fears that any escalation of tensions between Iran and the US would disrupt energy supplies from the Middle East region that accounts for nearly half of the world's oil production.

Geopolitical risks are still alive and kicking, said Elwin de Groot, head of macro strategy at Rabobank. Over the past few years these risks have undoubtedly affected markets, but hardly with any lasting impact. Yet geopolitics remains important, if only because it could always turn into a more nasty factor for markets at some point.

Emerging market currencies, such as South Africa’s rand, came under pressure, again reflecting a general burst of nervousness. The dollar leaped more than 1 percent to 14.297 rands.

Olivier Jakob, managing director of oil consultancy Petromatrix, said “the killing of Soleimani calls for a serious increase of the geopolitical risk premium

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.

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.

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.

KLCI Pulls Ahead, Energy Stocks In Focus

 After a slight dip in yesterday's trading, the FBM KLCI has continued on its upward trajectory amid growing momentum in global equities.

Helping the rising optimism was Britain approving the roll-out of the Pfizer and BioNTech Covid-19 vaccine next week while New York will be expecting delivery of its first batch of vaccines on Dec 15.

At 12.30pm, the FBM KLCI was up 12.34 points to 1,611.06. Trading activity remained robust with 6.64 billion shares exchanging hands for RM3.18bil.

At 10am, the FBM KLCI had risen 9.38 points to 1,510.87. The index earlier slipped to a low of 1,497.32.

Market breadth was positive with 501 gainers and 296 losers, while 415 counters traded unchanged. Trading volume was 2.19 billion shares valued at RM1.16 billion.

Top declining stocks included KLCI entities Petronas Dagangan Bhd, Public Bank Bhd, Tenaga Nasional Bhd, Petronas Chemicals Group Bhd, and Malayan Banking Bhd (Maybank).

The top gainers included Malaysian Pacific Industries Bhd, PPB Group Bhd, ViTrox Corp Bhd, Supermax Corp Bhd, and Public Bank.

The actively traded stocks included AT Systematization Bhd, Iris Corp Bhd, JCY International Bhd, Lambo Group Bhd, Mah Sing Group Bhd, and Luster Industries Bhd.

Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com that the drop in the KLCI today might have just been a minor pullback, after a favorable performance throughout the month of November. 

"It was probably just the month-end rebalancing of portfolios [by investors]. Market sentiment is still okay, even glove stocks have rebounded.  

Globally, it was reported today that world shares paused to assess a record-busting month on Monday as the prospect of a Covid-19 vaccine-driven economic recovery next year and yet more free money from central banks eclipsed immediate concerns about the coronavirus pandemic.

Bursa Malaysia Ends Broadly Lower On Profit-Taking

 Bursa Malaysia extended yesterday’s losses to end broadly lower today on profit-taking, with selling pressure in glove-maker stocks continued to weigh on the barometer index.

At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) ended 8.10 points or 0.52 percent lower at 1,556.64 from yesterday’s close of 1,564.74.

Following the swift recovery of the FBM KLCI in the previous session, investors seemed content to hover near the 1,600 psychological level while engaging in some slight profit-taking activity.

After falling nearly 10 points in early trade, the market recovered to end just 3.79 points lower at 1,598.47 at midday.

The key index opened 5.92 points lower at 1,558.82 and moved between 1,539.61 and 1,564.38 throughout the day.

Volume declined to 19.16 billion shares worth RM7.98 billion from Tuesday’s 27.80 billion shares worth RM7.80 billion.

Meanwhile, the lower liners continued to see upward momentum, leading to positive market breadth on the market yet again with 560 gainers to 471 decliners.

We reckon some stability will ensure with further upsides on the cards as investors continue to focus on the economic recovery progress," said Malacca Securities Research in its morning outlook.

Market breadth was negative with losers thumping gainers 907 to 315, while 295 counters were unchanged, 469 untraded, and 22 others suspended.

Regionally, China’s Shanghai Stock Exchange slipped 0.63 percent to 3,319.27, while Japan’s Nikkei Index rose 0.41 percent to 22,843.96, Hong Kong’s Hang Seng Index surged 1.42 percent to 25,244.02 and Singapore’s Straits Times Index gained 0.62 percent to 2,559.90.

An extended fall in oil prices led Petronas counters lower as Opec and its allies postponed a meeting on oil production to January.

Brent crude oil future fell 41 cents to US$47.01 a barrel while WTI crude dropped 46 cents to US$44.09.

Petronas Dagangan was among the top losers with a 32 sen slide to RM20.36 while Petronas Gas fell 28 sen to RM17.52.

Other counters in the red included plantation players KL Kepong down 22 sen to RM23.34 and PPB sliding 26 sen to RM18.34.

Hengyuan, which had been on a stellar rally in recent days, took a breather to slide 11 sen to RM4.28.

Semiconductor plays meanwhile rose, including MPI up 50 sen to RM25.60, KESM gaining 40 sen to RM12.02, Unisem rising 19 sen to RM5.82, and VS Industry climbing 17 sen to RM2.60.

On the local front, a dealer said the market was traded lower throughout the trading session with trading volume remained high on profit-taking by retail investors, as the rotational play among the lower liners kept trading activities at an elevated level.

Meanwhile, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said on a sectoral basis, the Bursa Healthcare Index was the biggest laggard with a 6.11 percent loss, while the Bursa Financial Services Index led gainers with a 1.40 percent jump.

Of the heavyweights, Maybank gained 16 sen to RM7.65, Public Bank rose 48 sen to RM17.40  and Tenaga advanced 14 sen at  RM11.14.

Top Glove dropped RM2.80 to RM24.50 and Hartalega slipped RM2.18 to RM16.12.

Among the most actives, Sapura Energy slid one sen to 13.5 sen, Borneo Oil and Lambo eased half-a-sen to seven sen and six sen, respectively, while NetX and Pegasus were flat at two sen and four sen, respectively.

On the index board, the FBM Emas Index decreased 118.70 points to 11,147.86, the FBM Emas Shariah Index was 331.66 points lower at 12,982.79 and the FBMT 100 Index contracted 107.43 points to 10,969.84.

The FBM 70 dropped 337.98 points to 14,312.22 and the FBM ACE tumbled 641.69 points to 9,998.49.

Sector-wise, the Plantation Index declined 8.47 points to 6,971.07, the Industrial Products and Services Index eased 1.77 points to 137.54, while the Financial Services Index rose 252.78 points to 13,195.29.

Main Market volume fell to 10.72 billion shares worth RM5.93 billion compared with 16.76 billion shares valued at RM5.68 billion yesterday.

Warrants turnover widened to 949.97 million units worth RM305.06 million from 604.25 million units valued at RM214.24 million yesterday.

In Asia, Japan's Nikkei rose 0.1% while South Korea's Kospi gained 1.25%.

China's composite index added 0.1% while Hong Kong's Hang Seng dipped 0.1%. Australia's ASX 200 was unchanged.

Asian Shares Extend Gains On Recovery Hopes

Asian share markets began the new month with a bang on Tuesday, buoyed by the prospect of a COVID-19 vaccine fueling a global economic recovery, buoyant Chinese factory activity, and expectations of continuing fiscal and monetary support.

MSCI's broadest index of Asia-Pacific shares outside Japan added 1.08% after closing the month 9% higher, the best November since 2001.

China’s blue-chip CSI300 index jumped to be 1.56% higher on Tuesday after a business survey showed on Tuesday activity in China’s factory sector accelerated at the fastest pace in a decade in November.

“That was one of the strongest readings we’ve had for many, many, many years in China, indeed, supporting the broader economic recovery story for the region,” said John Woods, Asia Pacific Chief Investment Officer at Credit Suisse’s Private Bank.

Where the China PMI goes, the MSCI Asia ex-Japan follows, so we would expect to see the further capital appreciation on the strong growth story in China."

Japan's Nikkei was up 1.34% while South Korea was up 1.5%. Australia's S&P/ASX 200 was 1% higher after Australia's central bank said the country's economy would need fiscal and monetary support "for some time" while noting the run of better news.

What we are seeing today is that upward trend reasserting itself, given the positive news on the vaccine front, China's growth picking up, and the tremendous faith in the ability of central banks to keep the markets afloat," said Stephen Miller, market strategist for GSFM Funds Management.

China’s blue-chip CSI300 index jumped to be 1.56% higher on Tuesday after a business survey showed on Tuesday activity in China’s factory sector accelerated at the fastest pace in a decade in November.

“That was one of the strongest readings we’ve had for many, many, many years in China, indeed, supporting the broader economic recovery story for the region,” said John Woods, Asia Pacific Chief Investment Officer at Credit Suisse’s Private Bank.

“Where the China PMI goes, the MSCI Asia ex-Japan follows, so we would expect to see the further capital appreciation on the strong growth story in China.”

“What we are seeing today is that upward trend reasserting itself, given the positive news on the vaccine front, China’s growth picking up, and the tremendous faith in the ability of central banks to keep the markets afloat,” said Stephen Miller, market strategist for GSFM Funds Management.

MSCI’s gauge of stocks across the globe was 0.18% higher and E-Mini futures for the S&P 500 were up 0.9%.

“We’ve seen clearly a huge wave of liquidity coming to equities in response to the vaccine news and in response to U.S. election news,” said Hamish Tadgell, a portfolio manager at SG Hiscock & Company.

“But there are still risks, and as a result, we could see the market pullback, I think, particularly as we come into the Christmas period.”

Moderna Inc applied for U.S. emergency authorization for its COVID-19 vaccine after full results from a late-stage study showed it was 94.1% effective with no serious safety concerns.

The progress on the COVID-19 vaccines and hopes of a swift economic rebound next year we're adding to the optimistic sentiment in the market, analysts said.

“I think that markets are pricing in, if not fully pricing a recovery, they are pricing in the vast majority of it (and) it’s very hard to meet these elevated expectations,” said Interactive Brokers Chief Strategist Steve Sosnick.

The dollar was under pressure on Tuesday, after closing out its worst month since July with a little bounce and as investors reckon on even more U.S. monetary easing.

The U.S. bond market was slightly weaker, as the U.S. Congress began a two-week sprint to secure government funding and avoid a possible shutdown amid the coronavirus pandemic.

Benchmark U.S. 10-year yields rose with U.S. Treasury futures trading one pip lower at $138.51.

Oil prices were slightly lower on uncertainty about whether the world’s major oil producers would agree to extend deep output cuts at talks this week.

U.S. crude eased back 35 cents to $44.99 a barrel on Tuesday, while Brent crude futures were 33 cents lower at $47.55.