KUALA LUMPUR, July 13 — Bursa Malaysia climbed higher today on optimism over Covid-19 recovery after Gilead Sciences reported some positive developments on clinical trial data.
At 9.10 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) increased 7.28 points at 1,599.12 from Friday’s close of 1,591.84.
The index opened 4.56 points higher at 1,596.40.
Market breadth was positive with gainers outpaced losers 380 to 164, while 299 counters were unchanged, 1,111 untraded and 22 others suspended.
Total volume stood at RM1.01 billion shares worth RM396.9 million.
Malacca Securities said US stock markets rebounded as the Dow surged 1.4 per cent, reclaiming the 26,000 psychological level after Gilead Sciences said Remdesivir reduced risk death in Covid-19 patients with more studies needed.
However, it said investors may stay on the sidelines following the first parliamentary sitting since the Movement Control Order (MCO), which took place from today, as they await for further political developments.
“The revision of market circuit breaker rules may provide a boost for further strides,” it added.
On Friday, the Securities Commission and Bursa Malaysia announced the temporary revisions of the existing market management and control mechanisms such as circuit breakers to provide added stability and confidence in the marketplace.
The revised mechanisms will apply from July 20, 2020 to Jan 18, 2021.
Among others, trading will be halted for the rest of the day as soon as the index falls by an aggregate of or more than 15 per cent of the previous market day’s closing index.
At present, the trigger point for stopping for the rest of the day is when the FBM KLCI drops by an aggregate of 20 per cent.
“Sector-wise, we continue to favour the healthcare sector as a clear winner on the unabated situation of Covid-19.
“In the meantime, the construction sector may also gain traction should there be no major political changes over the near term,” it said in a note today.
Malacca Securities said the upward bias momentum breakout above the aforementioned level may power the local bourse for further upsides towards 1,600, followed by 1,615, while downside risk remains located at 1,550, followed by 1,530.
Among heavyweights, Top Glove rose RM1.20 to RM23.12, Hartalega was 54 sen higher at RM17.60 and PetChem added eight sen to RM6.38.
Oil prices, however, were down ahead of a meeting of top producers this week.
In contrast, Maybank and Tenaga shed two sen each to RM7.88 and RM11.34 respectively, while Public Bank reduced 22 sen to RM18.28.
Of the most active, PDZ Holdings rose 10.5 sen to 31 sen. Vivocom was half-a-sen better at 4.5 sen and VSolar went down one sen to 4.5 sen.
On the index board, the FBM Emas was 68.55 points improved at 11,275.36, the FBMT 100 Index expanded 68.26 points to 11,129.64 and the FBM Emas Shariah Index jumped 130.33 points to 12,942.28.
The FBM 70 rose sharply by 155.72 points to 13,972.57 while the FBM ACE went up 57.56 points to 7,233.21.
Sector-wise, the Financial Services Index fell 24.50 points to 13,522.14, the Industrial Products and Services Index increased 0.61 of-a-point to 139.68 and the Plantation Index appreciated 82.09 points to 6,872.11. — Bernama
