BURSA MALAYSIA (TUE, 08 JAN 2019)
MID-DAY LUNCH BREAK REVIEW
BRIEF MARKET REVIEW:
The FBM KLCI fell at the mid-day break today, tracking the decline at most regional markets. At mid-day, the FBM KLCI shed 1.63 points to 1,677.54. The index had earlier risen to a high of 1,686.37.
Losers led gainers by 381 to 278, while 328 counters traded unchanged. Volume was 1.36 billion shares valued at RM824.34 million.
Stocks in Asia traded mixed on Tuesday afternoon as investors waited for developments from the second day of U.S.-China trade talks.
STOCKS IN THE LIMELIGHT:
DESTINI BHD (RM0.22, +4.76%)
Destini Bhd shares rose 4.76% at mid-day today after the group said its unit received a further three-year contract extension from the Home Affairs Ministry to maintain, repair and overhaul safety and survival equipment for the Royal Malaysian Police’s Pasukan Gerakan Udara.
According to Destini’s bourse filing yesterday, its unit Destini Prima Sdn Bhd received the letter of extension on Jan 4, with the contract’s ceiling value kept at RM10 million.
The extension, which will expire on Nov 29, 2021, entails the maintenance services, technical assistance and ground support for the Royal Malaysian Police Air Force.
The stock closed mid-day at RM0.22, up 4.76%, with a high volume of 4.6 million shares traded.
HARTALEGA HOLDINGS BHD (RM5.42, -5.74%), TOP GLOVE CORPORATION BHD (RM5.08, -4.15%)
Shares of rubber glove manufacturers Hartalega Holdings Bhd and Top Glove Corp Bhd fell among Bursa Malaysia’s top decliners as the ringgit strengthened.
In currency markets, the ringgit strengthened to 4.109 against the US dollar at mid-day. The exchange rates so far today are between 4.1055 and 4.1130. Over the last one year, the ringgit has strengthened to current levels after depreciating to its weakest point at 4.2020.
The ringgit’s strengthening against the US dollar is perceived to be negative for Malaysian exporters including rubber glove manufacturers because a stronger ringgit makes local products more expensive in world markets. A stronger ringgit also means Malaysian exporters’ US dollar-denominated revenue will be less in ringgit terms upon conversion to the Malaysian currency.
Hartalega closed at RM5.42 at mid-day on a high volume of 4.4 million shares traded, while Top Glove closed at RM5.08 at mid-day on a high volume of 14.0 million shares traded
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