Rakuten Trade's Thong said the stronger FBM KLCI performance was in tandem with the solid regional performances.
PETALING JAYA: Bursa Malaysia extended its rally yesterday, with the key index closing near to a 45-month high, fuelled by a surge in sentiment within the financial sector, underpinned by the robust quarterly earnings reports from key players.
At 5pm, the FBM KLCI rose 22.95 points or 1.38% to 1,675.24 from Tuesday’s close of 1,652.29.
The nearest high was recorded at 1,681.41 on Dec 16, 2020.
The index opened 5.48 points higher at 1,657.77 and moved in the positive territory throughout the day with an intraday high of 1,681.37 and an intraday low of 1,657.77.
However, the broader market was weaker as losers thumped gainers by 783 to 407, with 457 counters unchanged, 869 untraded and 42 others suspended.
Turnover increased to 3.96 billion units valued at RM4.65bil from 3.18 billion units valued at RM3.19bil on Tuesday.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the FBM KLCI concluded the trading day on a positive note, surpassing the 1,680 mark during the early hours.
He said the US Federal Reserve’s potential pivot and increased risk appetite among foreign investors also contributed to this favourable market dynamic.
“The performance mirrored the positive sentiment observed in the US equity markets, where rising consumer confidence bolstered investor optimism,” he told Bernama.
Mohd Sedek said the Bursa Malaysia Financial Index and Bursa Malaysia Utilities Index emerged as the standout performers during yesterday’s trading session, while among the components of the FBM KLCI, financial and telecommunication stocks led the gains.
“Looking ahead, we anticipate sustained momentum within the financial sector in the upcoming quarter, driven by the prevailing bullish sentiment and continued strong earnings from financial services companies.
“In the utilities sector, we foresee bargain-hunting activity in oil and gas stocks following their impressive financial results,” he added.
Beyond the banking and utilities sectors, the strengthening ringgit had positively impacted the consumer, construction and building materials sectors, he pointed out.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the stronger FBM KLCI performance was in tandem with the solid regional performances.
“Most emerging markets continued with their upward trajectory, supported by persistent foreign buying amidst the strengthening of Asian currencies against the US dollar,” he said.
“On the local front, the FBM KLCI closed at its highest level since December 2020.
“We are optimistic about the mid-term outlook of the market given the improvement in local market sentiment and the return of foreign funds,” Thong pointed out.
Of the heavyweights, Malayan Banking Bhd
jumped 16 sen to RM10.86, Public Bank Bhd advanced 12 sen to RM4.80, CIMB Group Holdings Bhd increased 45 sen to RM8.38, Tenaga Nasional Bhd added eight sen to RM14 and IHH Healthcare Bhd gained one sen to RM6.31.
As for the actives, Luster Industries Bhd was flat at 7.5 sen, while ACE Market debutant Vetece Holidngs Bhd gained 15.5 sen to 40.5 sen, and MyEG Services Bhd inched up half-a-sen to 90.5 sen.
