Bursa Malaysia recovers yesterday’s losses to open higher

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) increased 7.61 points to 1,564.25 from yesterday’s close of 1,556.64. — Picture by Azneal Ishak
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) increased 7.61 points to 1,564.25 from yesterday’s close of 1,556.64. — Picture by Azneal Ishak

KUALA LUMPUR, Aug 13 — Bursa Malaysia reversed yesterday’s losses to open higher today taking the cue from a rebound in US stocks as investors’ appetite for technology stocks resumed.

Investors also reacted positively amid signs of a slowdown in the spread of the coronavirus pandemic and stronger-than-expected US economic data.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) increased 7.61 points to 1,564.25 from yesterday’s close of 1,556.64.

The key index opened 7.49 points higher at 1,564.13.

Market breadth was positive, with gainers leading losers 408 to 106, while 232 counters were unchanged, 1,240 untraded and 33 others suspended.

Trading volume stood at 706.44 million shares worth RM258.62 million.

Malacca Securities Sdn Bhd in a note said although the FBM KLCI was traded lower for the fourth straight session yesterday, losses were narrowed owing to gains in financial giants following the Securities Commission (SC) move to increase the gearing limit for Malaysian real estate investment trusts (REIT) from 50.0 per cent to 60.0 per cent till Dec 31, 2022.

“We reckoned that a recovery may kick off supported by the gains across financial stocks that may provide some cushion from the pullback in glove heavyweights.

“Likewise, investors will also be taking the opportunity to bargain hunt on beaten-down stocks backed by the higher-than-average liquidity, but we caution that quick profit-taking activities are still on the horizon,” it viewed.

For sectors in focus, the firm said while gains in financial stocks may provide some cushion to the FBM KLCI, the energy sector may warrant another look after Brent oil prices closed above US$45 per barrel.

It added that long-term investors may opt for REIT stocks in view of the financing capping adjustment from SC to sustain their working capital.

Of the heavyweights, Maybank gained 14 sen to RM7.79, Public Bank eased two sen to RM17.38, Top Glove rose 30 sen to RM24.80, Tenaga fell 10 sen to RM11.04 and Hartalega increased 18 sen to RM16.30.

Among the most active, Borneo Oil and Sapura Energy edged up half-a sen to 7.5 sen and 14 sen respectively, I-Stone added 1.5 sen to 30.5 sen while Pegasus and NetX were flat at four sen and two sen respectively.

On the index board, the FBM Emas Index increased 65.57 points to 11,213.43, the FBM Emas Shariah Index was 71.97 points higher at 13,054.76 and the FBMT 100 Index gained 43.15 points to 11,012.99.

The FBM 70 rose 100.38 points to 14,412.60 and the FBM ACE advanced 135.43 points to 10,133.92.

Sector-wise, the Plantation Index added 39.66 points to 7,010.73, the Industrial Products and Services Index improved 0.85 point to 138.39 and the Financial Services Index was up 92.47 points at 13,287.76. — Bernama

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