KUALA LUMPUR, Oct 31 — Bursa Malaysia opened higher this morning, in sync with its regional peers as the expected US interest rate cut bolstered investors risk appetite in the global equity markets.
At 9.08am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gained 0.79 points to 1,580.79 from yesterday's close of 1,580.
The key index opened 0.86 points easier at 1,579.14.
Market breadth was positive with gainers trounced losers 149 to 88, while 200 counters were unchanged, 1,555 untraded and 46 others suspended.
Turnover amounted to 162.71 million shares worth RM67.21 million.
Malacca Securities Sdn Bhd, in a note, said although market conditions have become choppier and mixed, the uptrend looked to have been preserved and this could be a prelude for further near-term upsides for the FBM KLCI as it attempts to fortify its position around the 1,580 level.
The positive performance on Wall Street, cheering the latest interest rate cut, could also support the sustained gains on the FBM KLCI and also allow the key index to break out of its rangebound trend.
“Nevertheless, we think that the near-term gains are likely to be mild as the buying strength is still on the meek side with the key index poised for targets at 1,583 and 1,590 respectively.
“The supports, on the other hand, are at 1,577 and 1,570 respectively,” it said.
The US Federal Reserve has reduced its key policy rate for the third time this year, by 25 basis points to 1.5-1.75 per cent during the Federal Open Market Committee meeting in October 2019, which concluded yesterday.
The US central bank views the economy is slowing down while global uncertainties remain as major downside risks.
Back home, Bursa was mainly supported by interest in the heavyweights, especially among the banking stocks.
Maybank rose six sen to RM8.53, Public Bank chalked up 12 sen to RM19.52, CIMB gained three sen to RM5.12, and Hong Leong Bank increased eight sen to RM17.10.
Petronas Chemicals bagged two sen to RM7.45, while both Tenaga and IHH were flat at RM13.80 and RM5.74.
Of the actives, Kronologi earned six sen to 74 sen, Velesto inched up half-a-sen to 36.5 sen, Jaks improved three sen to RM1.03, but IFCA slipped half-a-sen to 50 sen.
The FBM Emas Index was 9.33 points higher at 11,203.35, the FBMT 100 Index advanced 8.3 points to 11,013.95, the FBM Ace garnered 11.78 points to 4,898.07, and the FBM 70 edged up 22.04 points to 13,894.25.
However, the FBM Emas Shariah Index trimmed 5.17 points to 11,792.56.
Sector-wise, the Financial Services Index perked 49.1 points to 15,369.24, but the Plantation Index lost 16.39 points to 6,654.55, while the Industrial Products & Services Index shed 0.02 point to 153.04. — Bernama
