KUALA LUMPUR (Feb 3): The main index of Bursa Malaysia had pared some its gains at the midday break today as index-linked glove makers ranked among the decliners, while regional bourses rallied.
At 12.30pm, the FBM KLCI was up 5.53 points at 1,586.02. The index earlier rose to a high of 1,593.46.
Gainers led losers by 624 to 410, while 419 counters traded unchanged. Trading volume was 3.16 billion shares valued at RM2.34 billion.
The gainers included Malaysian Pacific Industries Bhd, UWC Bhd, ViTrox Corp Bhd, Nestle (Malaysia) Bhd, Greatech Technology Bhd, KESM Industries Bhd, Mi Technovation Bhd, Pentamaster Corp Bhd and Toyo Ventures Holdings Bhd.
The actively traded stocks included Iris Corp Bhd. Greatech, Dagang NeXchange Bhd (DNeX), QES Group Bhd and Vizione Holdings Bhd.
The index rose to a high of 1,585.18 points earlier.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the market was mainly lifted by heavyweights in the O&G and glove sectors due to higher oil prices and positive corporate results.
“The market was slightly on the positive note today, but we saw some profit-taking activities after news of the novement control order (MCO) being extended until Feb 18,” he said.
He expects the market to continue to be range-bound this week as the MCO expansion continues to curb market sentiment.
Across Bursa, 6.63 billion securities were traded for RM5.12 billion, compared with 6.53 billion securities worth RM6.37 billion last Friday.
THE tech stock rally this month, which was particularly strong last week, should not come as a surprise to investors as many of the counters have hit all-time highs since last year’s June-to-August market rally.
The spectacular share price performances of these semiconductor and semiconductor-related stocks have been overshadowed by the rubber glove mania last year amid the Covid-19 pandemic. Until lately, that is.
One major factor fuelling the current rally is the global chip shortage, which has pushed up the prices of certain semiconductors and caused automotive firms to halt production.
But it appears that the shortage has become a boon to semiconductor players, including Malaysian companies, as lockdowns and travel restrictions are prompting consumers to buy more smartphones, smart devices, smart TVs, computers and laptops.
However, Hong Leong Investment Bank s head of retail research Ng Jun Seng opined that volatility remains.
The index rose to a high of 1,593.08 earlier.
Ng said investors were still assessing the impact of the recent Movement Control Order on the economy and corporates.
He also reckoned that buying interest was weak ahead of the holidays (Thaipusam on Jan 28 and Federal Territory Day on Feb 1).
“There is a cap on the upside at this juncture. Based on technical terms, if the market can’t reclaim above the 1,600 psychological level, the KLCI will be stuck at range bound,” he told thedgemarkets.com.
CGS-CIMB Research has upgraded its call on the Malaysian semiconductor sector to "overweight" from "neutral", saying it expects the sector to benefit from 5G network proliferation and higher power management content in electric vehicles (EVs).