KUALA LUMPUR: Bursa Malaysia closed on a positive note yesterday, buoyed by buying activities and improved regional markets’ performance, a dealer says.
At 5pm yesterday, the FBM KLCI rose 17.91 points to 1,435.17 from Monday’s closing of 1,417.26.
The index, which opened 2.07 points higher at 1,419.33, moved between 1,419.33 and 1,435.89 during the day.
On the broader market, gainers outpaced decliners 585 to 332, while 450 counters were unchanged, 959 untraded and nine others suspended.
Turnover increased to 3.39 billion units worth RM2.02bil from 2.88 billion units worth RM1.78bil on Monday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said key regional indices trended mostly higher, taking their cue from Wall Street’s optimism after the US Federal Reserve (Fed) officials minimised the chances of a rate hike for the rest of the year, despite the recent uptick in treasury yields.
“The benchmark index finished sharply higher, in line with the strong regional performance, and we believe that foreign funds are returning to the region.
“Nonetheless, considering the escalating geopolitical tensions in Israel, we recommend investors to remain vigilant as this could lead to an increase in crude oil prices, potentially causing a spike in inflation and rate hike,” he told Bernama.
Consequently, he anticipates the FBM KLCI will continue to trade within 1,430-1,440 for the rest of the week, with the next resistance level at 1,460 and support at 1,415.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the FBM KLCI had a good day yesterday as investors sense the Fed will pause the November rate hikes, as higher US yields and tighter bank lending conditions will help the Fed tame inflation, hence there is no need for a rate hike.
“Locally, investors may sense some policy redistribution in the upcoming budget as the government cuts subsidies for the wealthy and provides cash handouts for the poor, which should be good for the economy.
“Wealthy individuals do not need subsidising, while the poor do,” he said.
At the close, heavyweights Malayan Banking Bhd
increased nine sen to RM8.89, Public Bank Bhd rose 10 sen to RM4.13, CIMB Group Holdings Bhd added 13 sen to RM5.55, Petronas Chemicals Group Bhd edged up 13 sen to RM7.30 and Tenaga Nasional Bhd was flat at RM9.97.
Of the actives, Classita Holdings Bhd inched up 1.5 sen to eight sen, UEM Sunrise Bhd perked 6.5 sen to 87 sen, Netx Holdings Bhd recovered 2.5 sen to 19 sen and Sarawak Consolidated Industries Bhd firmed one sen to 49.5 sen, while KNM Group Bhd slid 2.5 sen to 12 sen.
Meanwhile, the ringgit experienced a slight increase in value against the US dollar when trading ended yesterday, with most traders eagerly anticipating goodies from Budget 2024 which will be tabled on Friday.
At 6.02pm, the local note rose to 4.7255/7310 against the greenback from Monday’s close of 4.7295/7335.
Innes said the currency market is adopting a wait-and-see approach.
“The foreign exchange market’s expectation is that the forthcoming budget will not entail an excessive fiscal stimulus. It will instead focus on policy redistribution such as reducing subsidies for the affluent and providing financial assistance to the less privileged.
“Nevertheless, this shift in policy direction might be beneficial for the economy and may yield positive results for the ringgit once concerns related to the budget subside,” he said.
