Bursa Malaysia ends on a firm note, up 1.56 per cent

KUALA LUMPUR: Bursa Malaysia ended 1.56 per cent firmer yesterday in tandem with the performance of its regional peers, taking a cue from the surge in Chinese blue chips.

China’s Shanghai Stock Exchange rallied on Monday amid hopes of further economic stimulus and an economic rebound.

The benchmark FTSE Bursa Malaysia KLCI ( FBM KLCI) rose 24.25 points to finish at 1,576.90 from Friday’s close of 1,552.65.

The index opened 1.14 points higher at 1,553.79 and moved between 1,553.79 and 1,577.82 throughout the period.

Overall, market breadth was positive with gainers thumping losers 744 to 333, while 407 counters were unchanged, 440 untraded and 23 others suspended.

Total volume increased to 8.73 billion shares worth RM5.07 billion from last Friday’s 6.72 billion shares worth RM3.81 billion.

Regionally, China’s Shanghai Stock Exchange surged 5.71 per cent to 3,332.88, Japan’s Nikkei Index gained 1.83 per cent to 22,714.44, Hong Kong’s Hang Seng Index rose 3.81 per cent 26,339.16, and Singapore’s Straits Times Index added 1.26 per cent to 2,686.47.

AxiCorp global chief market strategist Stephen Innes said sentiment remained incredibly constructive for Asia and global risk assets as positive economic data and optimism on a potential vaccine managed to offset rising US Covid-19 cases, as equities across the board moved higher.

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the FBM KLCI was higher despite concerns on Covid-19 infections in the advanced economies as well as potential hostility between the United States and China.

“Rubber glove-related counters are the main driver which resonates well with the health crisis narratives,” he told Bernama.

He said Bank Negara Malaysia’s ( BNM) Overnight Policy Rate (OPR) decision today will be closely watched for market direction, as any decision should have some bearing on the banking-related stocks.

“We foresee the BNM would keep the OPR unchanged as tentative signs of economic recovery are quite visible.

“There is no compelling case for additional monetary easing at this juncture despite the window or room for further monetary accommodation is quite tangible. A possible correction in the FBM KLCI is very likely should the BNM cut the OPR,” he added.

Among the heavyweights, Maybank added 12 sen to RM7.83, Tenaga gained 10 sen to RM11.86, Public Bank rose 28 sen to RM17.34, Hartalega surged 50 sen to RM16.50 and Petronas Chemicals increased 26 sen to RM6.94.