Bursa Malaysia climbs on bargain hunting

Kuala Lumpur shares start the final month of 2020 on a positive note. — Bernama pic
Kuala Lumpur shares start the final month of 2020 on a positive note. — Bernama pic

KUALA LUMPUR, Dec 1 — KL shares kicked off the last month of 2020 on a positive note as investors sought out beaten-down counters after yesterday's sharp selling.

At 9.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI) surged 1.6 per cent or 24.77 points to 1,587.48 compared with yesterday's close of 1,562.71.

The index opened 17.46 points stronger at 1,580.17.

On the broader market, gainers outnumbered losers 328 to 172 while 321 counters were unchanged, 1,287 untraded and 16 others suspended.

Volume was active at 525.46 million units worth RM247.57 million.

Malacca Securities said the FBM KLCI closed lower yesterday as the market pulled back into investors’ month-end portfolio rebalancing, while the lower liners ended in the green amid high demand.

Still, the FBM KLCI recorded 95.82 points on gains (6.5 per cent month-on-month) in November 2020.

“Although we see renewed volatility unfolding, we reckon that bargain-hunting activities may take precedence after the sharp fall yesterday.

“On the other hand, we think that the lower liners are poised for further upsides, driven by the improved trading liquidity which may extend the rotational play,” it said in a note today.

It believes renewed trading interest is developing within the healthcare sector on the prospect of higher weightage in gloves makers in the FBM KLCI, while the property sector is expected to remain on course for further recovery, owing to the various measures under Budget 2021 to boost home ownership.

In the US market, the Dow (-0.9 per cent) enjoyed its best month in over three decades despite closing lower, after continued positive market sentiments lifted by Covid-19 vaccine hope.

CGS-CIMB sees resistance now at 1,600 followed by critical resistance of 1,618-1,625.

Going forward, investors cautiously await output decision from Opec and its allies. It was reported OPEC has put off until later this week a decision whether to extend oil productions cuts.

At home, Tenaga Nasional climbed by 42 sen to RM10.50, Maybank improved 20 sen to RM8.10, Public Bank recovered 44 sen to RM17.84, and Hong Leong Bank increased by 68 sen to RM17.86.

In contrast, Petronas Gas down 58 sen to RM17.58 and PBB dropped 30 sen to RM18.30.

Among the actives, AT Systematization added two sen to 22 sen, EA Holdings was half-a-sen higher at 3.5 sen and Metronic up one sen to 12 sen.

On the index board, the FBM Emas Index increased 146.02 points to 11,480.89, the FBMT 100 Index inched up 140.81 points to 11,241.55 and the FBM Emas Shariah Index expanded 133.26 points to 13,280.63.

The FBM 70 jumped 51.28 points to 14,880.20 and the FBM ACE rose 16.58 points to 10,718.19.

Meanwhile, the Industrial Products and Services Index increased 2.08 points to 162.74, the Plantation Index was 79.24 points higher at 7,295.97 and the Financial Services Index leaped 277.28 points to 14,081.49. — Bernama

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