KUALA LUMPUR : Persistent buying momentum in index-linked counters helped push Bursa Malaysia to close firmer yesterday in tandem with the rally in global equities, boosted by positive market sentiment amid optimism over the US-China trade talk.
At the close, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 9.25 points to finish at the day’s high of 1,692.22 against Thursday’s close of 1,682.97 after falling as low as 1,681.89 at one time.
The key index opened weaker this morning but managed to recover after five minutes of trading as local investors took the cue from the bullish regional bourses.
Gains in Petronas Chemicals and Maybank fueled the composite index with a combined 5.525 points after rising 20 sen to RM8.60 and 14 sen to RM9.55, respectively.
The overall market breadth remained bullish as gainers continued to outnumber losers 486 to 369, while 365 counters were unchanged, 672 untraded and 26 others suspended.
Total volume surged to 3.05 billion shares worth RM2.12 billion from Thursday’s 2.40 billion shares valued at RM2.04 billion.
The better Bursa performance was partly supported by strong buying momentum in the small capitalisation stocks, which saw the FBM Small Cap Index surge 131.35 points to 12,812.11. Phillip Capital Management Malaysia senior vice-president (investment) Datuk Dr Nazri Khan Adam Khan said equity investors cheered the latest development in the US-China trade dispute on hope that “things will go into a positive direction” and provided positive outlook for global growth.
The Wall Street Journal reported, quoting unnamed sources, that US Treasury Secretary Steven Mnuchin and other officials were willing to lift some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled to take place in Washington on Jan 30 and 31.
“Alongside the latest Brexit developments and rising oil prices, I can say it is a dramatic V-turn and sharp reverse for the FBM KLCI. We welcome these (positive developments),” Nazri told Bernama.
Among heavyweights, Public Bank rose 12 sen to RM24.80, Tenaga gained eight sen to RM13.68, and CIMB added two sen to RM5.67.
Of actives, Bumi Armada perked six sen to 22 sen, Sapura Energy inched down half-a-sen to 28.5 sen, Sumatec slipped one sen to half-a-sen, and MyEG lost six sen to RM1.01. The FBM Emas Index was 53.93 points firmer at 11,704.36, the FBMT 100 Index increased 53.83 points to 11,583.99, the FBM Emas Shariah Index advanced 52.73 points to 11,627.73, the FBM 70 improved 24.56 points to 13,777.56 and the FBM Ace Index added 5.95 points to 4,469.54.
Sector-wise, the Finance Index soared 108.58 points to 17,528.25, the Plantation Index rose 8.62 points to 7,201.04, and the Industrial Products and Services Index added 1.82 points to 163.66.
Main Market volume ballooned to 2.34 billion shares worth RM2.00 billion against 1.72 billion shares valued at RM1.92 billion recorded on Thursday.
Warrants turnover narrowed to 357.71 million units worth RM66.30 million from 389.69 million units valued at RM76.86 million on Thursday.
Volume on the ACE Market increased sharply to 354.08 million shares worth RM46.19 million versus 293.12 million shares valued at RM38.97 million previously.
Consumer products and services accounted for 183.93 million shares traded on the Main Market, industrial products and services (280.04 million), construction (190.42 million), technology (189.19 million), SPAC (nil), financial services (40.29 million), property (73.74 million), plantations (43.89 million), REITs (14.31 million), closed/fund (26,000), energy (1.16 billion), healthcare (55.25 million), telecommunications and media (26.75 million), transportation and logistics (51.07 million), and utilities (29.91 million). – Bernama
