KLCI drifts lower as index-linked glove makers drag

KLCI drifts lower as index-linked glove makers drag
-A +A

KUALA LUMPUR (Feb 22): The main index at Bursa Malaysia drifted lower in early trade on Monday as index-linked glove makers dragged.

At 9.05am, the FBM KLCI had dipped 1.70 points to 1,583.23.

The early decliners included Mi Technovation Bhd, Tasco Bhd, Amtel Holdings Bhd, Supermax Corp Bhd, Top Glove Corp Bhd, SAM Engineering & Equipment (M) Bhd, Comfort Gloves Bhd and LPI Capital Bhd.

Bloomberg said the bond sell-off continued on Monday as benchmark yields jumped in both Australia and New Zealand.

Asian stocks were set for a steady start as investors weighed the implications of rising long-term borrowing costs, it said.

Rakuten Trade said Wall Street ended flattish last Friday as traders were pondering on possible higher interest rates amid the hike in the US 10-year treasury yield to 1.34%.

It said the Dow Jones Industrial Average remained at 31,494, having touched a day high at almost 31,650.

“Therefore, we reckon performance of regional markets to be rather muted today.

“As for the local bourse, we believe sentiments will be boosted by news of Covid-19 vaccine availability but may see performance to be negated as glove counters may see continued selling as a result.

“As such, we reckon the FBM KLCI to experience some strong resistance at the 1,590 level today.

“Crude oil prices remain rather resilient at US$63 (RM254.52)/barrel as the gradual global recovery continues to support demand,” it said.