KUALA LUMPUR: Malaysia’s benchmark FBM KLCI bounced back from earlier losses as the regional sentiment picked up on expectation US policymakers will halt its interest rate hikes in June and begin slashing borrowing costs thereafter.
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At 12.30pm, the country’s composite index was up 2.77 points to 1,428.75. However, the broader market remained negative with 477 decliners compared with 250 gainers.
Trading volume was 1.66 billion shares valued at RM736.53mil.
Bank stocks were the most improved at the lunch break as they are seen to benefit from Bank Negara’s recent overnight policy rate hike. Maybank gained one sen to RM8.73, Public Bank rose six sen to RM3.97 and CIMB added six sen to RM5.13.
Hong Leong Bank went the other direction, losing two sen to RM20.26.
Technology stocks on Bursa however were subdued as investors priced in the 25 basis points increase in the US benchmark rate on May 3.
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Bursa Malaysia’s technology index slipped 1.2% to 60.27, with leading laggards including Greatech down 13 sen to RM4.40, Unisem slipping six sen to Rm2.82, MI Technovation shedding six sen to RM1.60 and Vitrox sliding eight sen to RM7.83.
In Asian markets, investors are expecting the Fed to begin lowering borrowing costs from July as inflation levels have showed signs of normalisation.
However, the US central bank had guided that any changes in monetary policy will be determined by the economic data.
Japan’s Nikkei rose 0.1% to 29,157 and South Korea’s Kospi was unchanged at 2,500, while China’s composite index slid 0.7% to 3,326 on the back of Caixin’s survey that showed slowing growth in the country’s service sector.
Hong Kong’s Hang Seng however rose 0.6% to 20,076 and Australia’s ASX200 gained 0..3% to 7,217. – The Star