KUALA LUMPUR, Oct 31 — Bursa Malaysia ended October on a strong note with the key index rallying to a six-week high today, as investors cheered the interest rate cut by the US Federal Reserve, while supported by gains in Public Bank.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) finished 17.98 points or 1.138 per cent firmer at 1,597.98 from 1,580 recorded at yesterday’s close.
Despite a weaker opening of 0.86 of a point at 1,579.14 this morning, the barometer index hovered in positive territory throughout the day and went as high as 1,599.77.
Public Bank, which earlier announced its wholly-owned subsidiary, Cambodian Public Bank Plc’s partnership with China Construction Bank (Malaysia) Bhd, to jointly promote and develop business opportunities in Cambodia, Malaysia and China, saw its share soar 90 sen to RM20.30.
The bank alone helped lift the composite index by 6.153 points with 9.69 million shares done.
The US Federal Reserve (Fed) reduced its key policy rate yesterday, for the third time this year, by 25 basis points to 1.5-1.75 per cent.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the Fed’s decision to cut its Federal Fund Rate (FFR) might have helped lift market sentiment.
Speaking to Bernama, he said the reduction showed the central bank is very supportive of promoting economic growth, at a time when private sector spending and investments are very weak.
This is based on the third quarter gross domestic product result which came in at a slower growth of 1.9 per cent from 2.0 per cent previously.
“The personal consumption expenditure, which is the main pillar of US growth, saw a sharp slowdown from 4.6 per cent to 2.9 per cent during the September quarter.
“The Fed also reduced the interest paid for the excess reserve from 1.80 per cent to 1.55 per cent. Again it shows the Fed’s commitment to providing monetary stimulus to the economy,” Mohd Afzanizam said.
Regionally, the Singapore Straits Times Index gained 0.68 per cent to 3,229.88, Japan’s Nikkei 225 rose 0.37 per cent to 22,927.04 and Hong Kong’s Hang Seng Index surged 0.9 per cent to 26,906.72.
Mohd Afzanizam said the FFR cut means Malaysia’s overnight policy rate (OPR) had a favourable differential at about 125 to 150 basis, given that it currently stood at 3.00 per cent.
“We have seen net inflows from abroad, although it could be too early to tell, as to whether the prevailing trend can hold out,” he added.
On the broader local market, gainers outgunned losers 539 to 308, while 385 counters were unchanged, 760 untraded and 47 others suspended.
Volume expanded to 2.95 billion shares worth RM2.7 billion from 2.27 billion shares valued at RM1.71 billion yesterday.
Of the actives, Bumi Armada rose three sen to 45 sen, Velesto inched down half-a-sen to 35.5 sen, MyEG edged up eight sen to RM1.14, Mudajaya bagged two sen to 36 sen, while Multi Sports added one sen to 1.5 sen.
The FBM Emas Index improved 111.71 points to 11,194.02, the FBMT 100 Index climbed 110.43 points to 11,116.08, the FBM Ace chalked up 86.82 points to 4,973.11, the FBM Emas Shariah Index bagged 32.05 points to 11,829.78, and the FBM 70 advanced 78.05 points to 13,950.26.
Sector-wise, the Financial Services Index jumped 336.81 points to 15,656.95, the Plantation Index increased 65.15 points to 6,736.09, and the Industrial Products & Services Index added 0.45 of a point to 153.51.
Main Market volume widened significantly to 2.06 billion shares worth RM2.49 billion from 1.49 billion shares valued at RM1.72 billion yesterday.
Warrants turnover increased to 372.33 million units worth RM61.56 million against 255.82 million units valued at RM39.86 million.
Volume on the ACE Market, however, narrowed to 510.64 million units worth RM140.82 million compared with 519.05 million units valued at RM150.05 million previously.
Consumer products and services accounted for 361.94 million shares traded on the Main Market, industrial products and services (234.06 million), construction (334.79 million), technology (203.19 million), SPAC (nil), financial services (98.13 million), property (113.53 million), plantations (37.74 million), REITs (9.81 million), closed/fund (36,400), energy (483.41 million), healthcare (29.15 million), telecommunications and media (78.03 million), transportation and logistics (30.93 million) and utilities (49.08 million). — Bernama
