FBM KLCI Rises As Investors Chase Glove Counters Amid Expectation For Outsized US Rate Cut

By Siti Radziah Hamzah

KUALA LUMPUR, Sept 17 (Bernama) -- Bursa Malaysia ended Tuesday’s trading higher, in line with global shares as hopes rise for an outsized US interest rate cut with investors chasing glove counters on news that the United States will finalise tariffs on Chinese goods, including medical gloves, this month.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) jumped 12.13 points, or 0.73 per cent, to 1,664.28 from last Friday’s close of 1,652.15. 

The FBM KLCI had opened 2.16 points firmer at 1,654.31 and moved between 1,651.55 and 1,664.99 throughout the day.

Gainers outpaced decliners in the broader market 658 to 433, while 455 counters were unchanged, 959 untraded and seven suspended. Turnover increased to 3.19 billion units worth RM3.35 billion against 2.84 billion units worth RM2.74 billion on Friday.  

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the improved sentiment was also driven by a rebound in crude oil prices ahead of key decisions from the US Federal Reserve (Fed) tomorrow and from the Bank of Japan and the People’s Bank of China on Sept 20.

“We believe that markets may be pricing in a 50 basis points rate cut for tomorrow’s Federal Open Market Committee (FOMC) meeting to influence the Fed’s decision, which is expected to be a close call. While this strategy might weaken the dollar further, our outlook still slightly favours a 25 basis points cut,” he told Bernama.

At the time of writing, Brent crude was 0.18 per cent higher at US$72.88 per barrel. 

Rakuten Trade Sdn Bhd's equity research vice-president Thong Pak Leng said despite the increased volatility, the outlook for the local market remains cautiously optimistic, driven by favourable valuations, strong corporate earnings, and better economic conditions.  "As a result, the blue-chip buying momentum is expected to carry on through the week. We anticipate the FBM KCI to trend within the range of 1,650-1,670 for the week with immediate resistance at 1,670 and support at 1,630," he added.

Among glove counters, Hartalega led the pack, approaching its limit-up and surging 29.75 per cent, or 72 sen, to RM3.14 while Kossan soared 42 sen to RM2.25 and Top Glove surged 22.5 sen to RM1.14. Supermax jumped 14 sen to 93 sen. 

US tariffs on medical gloves from China will rise to 50 per cent in 2025 and 100 per cent in 2026, according to a Bloomberg report.

Meanwhile, IHH Healthcare led among the heavyweight stocks, jumping 27 sen to RM7.05 while CIMB gained 20 sen to RM8.36 and Press Metal expanded by 13 sen to RM4.91.  

CelcomDigi rose six sen to RM3.76 and Petronas Chemicals advanced eight sen to RM5.58. Maybank rose two sen to RM10.66 while Public Bank and Hong Leong Bank were both flat at RM4.70 and RM21.20, respectively. 

Of the actives, Careplus added 4.5 sen to 30.5 sen, MYEG gained three sen to 93 sen, WCT went up five sen to RM1.06, OCR was flat at six sen and Sarawak Consolidated dropped one sen to 23.5 sen. 

On the index board, the FBM Emas Index bounced 119.56 points to 12,421.87, the FBM Emas Shariah Index gained 158.13 points to 12,273.94 and the FBMT 100 Index garnered 121.19 points to 12,137.49. 

The FBM 70 Index jumped 297.93 points to 17,579.81, and the FBM ACE Index advanced 18.07 points to 5,102.31.  

By sector, the Financial Services Index bagged 89.85 points to 19,640.95, the Energy Index added 6.91 points to 869.72, the Plantation Index put on 32.74 points to 7,213.47, and the Industrial Products and Services Index gained 1.76 points to 176.91.  

The Main Market volume expanded to 1.88 billion units worth RM3.14 billion from last Friday’s 1.54 billion units worth RM2.51 billion.  

Warrant turnover eased to 932.78 million units valued at RM108.56 million versus 997.96 million units valued at RM125.24 million previously.  

The ACE Market volume widened to 370.14 million units worth RM96.42 million from 301.37 million units worth RM103.85 million.  

Consumer products and services counters accounted for 230.10 million shares traded on the Main Market, industrial products and services (257.34 million), construction (160.64 million), technology (195.44 million), SPAC (nil), financial services (103.11 million), property (169.56 million), plantation (15.65 million), REITs (11.64 million), closed/fund (176,200), energy (63.13 million), healthcare (570.93 million), telecommunications and media (17.81 million), transportation and logistics (26.57 million), utilities (59.85 million), and business trusts (497,500).

-- BERNAMA