Bursa trad­ing vol­ume hits all-time high

The Star Malaysia - StarBiz - - News - By GANESHWARA­N KANA ganeshwara­n@thes­tar.com.my

PETALING JAYA: It was a back-to-back record day for Bursa Malaysia af­ter both trad­ing vol­ume and daily turnover of the stock ex­change surged to all-time-high lev­els.

While the sec­ond trad­ing of Au­gust had a shaky start in the morn­ing ses­sion as losers out­num­bered gain­ers ini­tially across Bursa Malaysia, strong in­vestor in­ter­est in mostly small and mid-cap stocks re­lated to sec­tors like tech­nol­ogy as well as in­dus­trial prod­ucts and ser­vices fu­elled the rally in the mar­ket.

It ap­pears that op­ti­mism in the re­gional mar­ket as most key stock ex­change in­dices rose has helped to lift the sen­ti­ment in the lo­cal eq­ui­ties mar­ket.

Signs of green shoots in the man­u­fac­tur­ing ac­tiv­i­ties of key global economies, in­clud­ing the United States, apart from the pos­i­tive data from the Us-based Semi­con­duc­tor In­dus­try As­so­ci­a­tion, also of­fered fresh hope on the global eco­nomic out­look.

Bursa Malaysia’s trad­ing vol­ume touched 15.62 bil­lion shares yes­ter­day, mark­ing the high­est vol­ume in lo­cal his­tory. It was only a day ear­lier when Bursa Malaysia saw a record­high trad­ing vol­ume of 13.12 bil­lion shares.

Mean­while, the value traded also hit a new high at Rm10.45bil. Over 44% of the turnover was con­trib­uted by the health­care sec­tor alone.

The mar­ket breadth yes­ter­day was mixed as 608 gain­ers trumped 514 losers. A to­tal of 376 coun­ters were un­changed.

The stock ex­change’s bell­wether in­dex, FBM KLCI, went through a yo-yo day of trad­ing. By mid­day, blue chips ex­tended their losses, dragged down by heavy­weight glove maker Har­talega Hold­ings Bhd.

The in­dex hit an in­tra-day low of 1,549.62 points but later re­bounded to close in the pos­i­tive ter­ri­tory. At 5pm, the in­dex was up 3.33 points or 0.21% to 1,575.94.

A to­tal of 16 con­stituents of the 30-stock in­dex de­clined yes­ter­day. While Har­talega was the worst per­former on FBM KLCI as it de­clined by 2.73%, Top Glove Corp Bhd on the other hand was the best per­former and rose by 5.51%.

A trader told Star­biz that re­tail in­vestors re­mained the big­gest cat­a­lyst for liq­uid­ity on the stock mar­ket.

“While there are con­cerns about cor­po­rate earn­ings since the re­sults sea­son is here, it looks like the re­tail in­vestors con­tinue to chase penny stocks and mid-cap stocks to ben­e­fit from the mar­ket rally.

“Glob­ally, you can see key in­dices like Nas­daq and S&P500 on the rise and keep hit­ting new highs. Cou­pled with the grad­ual re­cov­ery in eco­nomic ac­tiv­i­ties, th­ese have fur­ther strength­ened in­vestor sen­ti­ment,” he said.

On the ex­ter­nal front, key re­gional stock mar­ket in­dices closed higher on im­proved in­vestor sen­ti­ment.

In China, the Shang­hai Com­pos­ite In­dex inched up 0.1%. The rise seems to be on the back of strong gains in banks as in­vestors cheered Bei­jing’s lat­est move to ease pres­sure on the coun­try’s fi­nan­cial in­sti­tu­tions.

Mean­while, Ja­pan’s bench­mark Nikkei av­er­age gained 1.7% to reach its high­est close since July 28.

Hong Kong’s Hang Seng in­dex was up 2% as stocks snapped a three-ses­sion losing streak and ended higher, led by strong gains in tech­nol­ogy firms.

“It looks like the re­tail in­vestors con­tinue to chase penny stocks and mid-cap stocks to ben­e­fit from the mar­ket rally.”


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