Better economic prospects lift Bursa Malaysia higher at close

KUALA LUMPUR, March 18 — Bursa Malaysia extended gains for a second straight day Thursday as improved economic prospects, both internally and externally, boosted the equity market.

At 5pm, the benchmark FTSE Bursa Malaysia (FBM KLCI) pared early gains amid some profit-taking activities but remained on the positive side to end 3.02 points higher at 1,627.99 versus Wednesday’s close of 1,624.97.

The index opened 1.21 points firmer at 1,626.18 and remained above this level throughout the day and hit a high of 1,635.15 in the morning session.

On the broader market, gainers led losers 634 to 615, while 411 counters were unchanged, 587 untraded and 27 others suspended.

Total volume, however, eased to 9.15 billion shares worth RM4.89 billion from Wednesday’s 12.67 billion shares worth RM4.77 billion.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said Asian peers also recorded gains today after the US Federal Reserve (Fed) pledged to keep interest rates at near zero for a while despite an expected rise in inflation.

It also projected the an economic growth of 6.5 per cent for the US, Malaysia’s top trading partner, as the Covid-19 crisis winds down.

An analyst said the overnight US stock markets rebounded strongly as the Dow Jones Industrial Average put on 0.6 per cent, topping the 33,000 psychological level after the Fed stood pat on the dovish interest rate stance, at least through 2023.

Domestically, he said investors lauded the introduction of the additional stimulus package – the Strategic Programme to Empower the People and Economy (PEMERKASA), which is set to strengthen the domestic economic recovery.

“This has bolstered interest in recovery-themed stocks, mainly banking,” he told Bernama.

Public Bank led the gains by heavyweights, increasing four sen to RM4.28, Genting Bhd was 19 sen higher at RM5.49 and Genting Malaysia went up 11 sen to RM3.29.

Press Metal was 16 sen higher at RM10.16, IHH was seven sen better at RM5.35 and CIMB expanded four sen to RM4.55.

As for active counters, Datasonic dropped eight sen or 12.5 per cent to 56 sen. Trading in the counter was halted at 2.32 pm and resumed trading at 3.32 pm.

In a filing to Bursa Malaysia, Datasonic clarified that its deputy managing director, Chew Ben Ben, was a former director of Pristine Offshore Sdn Bhd, which is being charged by the Malaysia Anti-Corruption Commission under Section 16(b)(A) of the MACC Act, 2009 for allegedly paid a bribe in relation to a sub-contract for ship chartering for oil mining work.

It said the charge is strictly related to Chew’s private investment company in workboat chartering accommodation business and is not related to any of Datasonic’s operation.

Chew has pleaded not guilty to the charge and is already on bail and back to work in office now to assume his duties and responsibilities as Datasonic deputy managing director. Chew holds 49 per cent interest in Pristine.

Meanwhile, Pegasus was half-a-sen lower at 2.5 sen, LKL International fell six sen to 40 sen, and Scomi Group gained half-a-sen to six sen.

On the index board, the FBM Emas Index gained 27.47 points to 11,951.11, the FBMT 100 improved 27.19 points to 11,625.60, and the FBM Emas Shariah edged down 8.01 points to 13,238.14.

The FBM 70 advanced 58.52 points to 15,765.22 and the FBM ACE was 35.16 points firmer at 10,637.35.

Sector-wise, the Financial Services Index rose 67.96 points to 15,567.92, the Plantation Index declined 40.80 points to 7,159.79, and the Industrial Products and Services Index inched up 2.14 points to 193.97.

Main Market volume reduced 6.06 billion shares worth RM4.07 billion versus 9.43 billion shares worth RM4.02 billion on Wednesday.

Warrants turnover expanded to 392.54 million units worth RM72.34 million from 294.75 million units worth RM50.02 million yesterday.

Volume on the ACE Market decreased to 2.70 billion shares worth RM746.50 million from 2.95 billion shares worth RM695.23 previously.

Consumer products and services accounted for 867.28 million shares traded on the Main Market, industrial products and services (1.33 billion), construction (394.77 million), technology (1.60 billion), SPAC (nil), financial services (96.84 million), property (659.46 million), plantations (51.52 million), REITs (15.05 million), closed/fund (32,000), energy (756.28 billion), healthcare (59.11 million), telecommunications and media (62.02 million), transportation and logistics (134.04 million), and utilities (42.02 million). — Bernama