Profit-taking sends benchmark FBM KLCI down 12.62 points

PETALING JAYA: Profit-taking amid a market that has held up well despite threats of the Covid-19 pandemic making a second wave globally sent the benchmark FBM KLCI lower yesterday.

The FBM KLCI fell by 12.62 points, or 0.91%, at its close yesterday to 1,376.93.

Banking stocks, which have the heaviest weightage on the index, dropped despite the 50-basis-point interest rate cut by Bank Negara on Tuesday.

Some of the banks that fell are Public Bank Bhd, which lost 32 sen to RM15.74, Malayan Banking Bhd dropped 7 sen to RM7.41 and

RHB Bank Bhd declined 5 sen to RM4.62.

Among the index’s component gainers, IHH Healthcare Bhd rose 1 sen to RM5.19 and Sime Darby Plantation Bhd added 1 sen to RM4.79.

Oanda’s Asia-pacific senior market analyst Jeffrey Halley said financial markets’ disconnection with the real world accelerated overnight, with both equities and energy markets recording substantial gains as Covid-19 lockdowns were eased across the globe.

However, he noted that life would not return to normal anytime soon, adding that many had the fear of missing out on gains in the market now.

Asian markets were mixed as at press time, with Hong Kong’s Hang Seng up 1.13%, Singapore Straits Times Index gained 1.18% and South Korea’s Kospi rose 1.76%, while others like Indonesia’s Jakarta Composite Index down 0.46% and Thailand’s SET shed 1.77%.

The US Dow Jones’ futures were holding in the green at press time.

Back at home, performance on the broader Bursa Malaysia was mixed, with gainers almost equalling losers, 397 counters unchanged and 593 untraded.

Some 5.88 billion shares worth Rm2.80bil changed hands.

Among the gainers, G3 Global Bhd jumped 66 sen or 30%, as the company announced it is partnering Malaysia Automotive Robotics and IOT Institute to jointly market and deploy thermal-imaging products manufactured by Sensetime.

The other gainers included Panasonic Manufacturing Malaysia that added 22 sen to RM31.88 while Can-one Bhd rose 22 sen to RM2.73.

Some of the biggest losers were LPI Capital Bhd that lost 40 sen to RM12.62 and Nestle (M) Bhd, which declined 30 sen to RM139.30.

Brent crude oil futures rose overnight but trimmed their gains to US$31.36 per barrel (+1.26%) at press time after it had chalked up six consecutive days of gains prior to this, even as supply concerns continue to haunt the market after it was reported that US crude inventories rose more than expected.

The ringgit weakened by 0.35% to 4.3215 to the US dollar.