FBM KLCI adds 4.68 points with boost from budget, Biden win
KUALA LUMPUR: Bursa Malaysia added 4.68 points to 1,524.32 yesterday, boosted by Malaysia’s most expansive budget as announced on Friday and Joe Biden’s win in the United States presidential election.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) had risen 9.1 points, or 0.5 per cent, to 1,528.74 points at 9.23am but gave back gains at midday on profittaking activities before bouncing back at the close.
Hong Leong Investment Bank Bhd (HLIB) said it believed the market would read 2021 Budget with a positive bias as it provided a much-needed booster.
It said the impact seemed to be positive for the construction, property, gloves, healthcare, tourism and logistics sectors and neutrally tilted for the banking and telecommunication sectors.
“Hence, we maintain our FBM KLCI target at the 1,580 level.”
HLIB said Biden’s win and the expansive budget would keep the local market in a “celebratory mood”.
But concerns over the economic impact arising from the Conditional Movement Control Order and ongoing results season might restrict further rally, it added.
OANDA senior market analyst for Asia Pacific Jeffrey Halley said Biden’s win should be good for the ringgit along with other Asian currencies in general.
“More easing from the Federal Reserve will weaken the US dollar and strengthen regional currencies, a trend that I expect to persist through next year,” he told the New Straits Times.
“But we cannot discount surprise behaviours (by President Donald Trump), such as new executive orders that will make the new administration’s transition to power difficult from the start,” he added.
Biden will be sworn in as US president on Jan 20 next year.
Meanwhile, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said Hap Seng Consolidated Bhd led losers with a 1.9 per cent drop yesterday.
Telco counters such as Telekom Malaysia Bhd and Maxis Bhd were among the biggest gainers with 3.3 and 2.9 per cent, respectively.