KUALA LUMPUR (March 8): Bursa Malaysia continued last Friday’s upward momentum, tracking the performance of its Asian peers over optimism about the US’ US$1.9 trillion (RM7.74 trillion) stimulus package and higher crude oil prices.
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At 9.04am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.39 points to 1,612. 61 from 1,600.12 at last Friday’s close.
The key index opened 7.36 points higher at 1607.48.
On the broader market, gainers outpaced losers 503 to 89, while 277 counters were unchanged, 1,303 untraded and eight others suspended.
Total volume stood at 541.16 million units worth RM214.05 million.
Malacca Securities Sdn Bhd said the FBM KLCI last Friday bucked the losses on Wall Street and surged above the 1,600 psychological level, amid continued buying interest in banking heavyweights after Bank Negara Malaysia’s decided to retain the Overnight Policy Rate, coupled with gains in energy stocks which spurred the key index rally.
“We reckoned the positive momentum of the key index to continue as the rallies in the banking sector may indicate market’s hope for an economic recovery.
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“Meanwhile, the Brent oil price continued seeing its uptrend after the Organisation of the Petroleum Exporting Countries (OPEC) and its allies decided to keep production steady through April,” it said in a research note.
Given the setup, it said the energy sector is likely to continue its uptrend move amid firmer Brent oil prices while technology stocks might also be sought after by bargain hunters following the sharp decline.
“Also, do note that that traders may focus on the recovery-theme segments such as gaming, tourism, construction and property following the decline in daily COVID-19 cases,” it added.
Among heavyweights, Maybank added six sen to RM8.42, Public Bank rose 10 sen to RM4.45, Petronas Chemicals surged 18 sen to RM8.00, Tenaga increased eight sen to RM10.42, and IHH Healthcare was two sen better at RM5.35.
Of the actives, Sapura Energy, Velesto and Alam Maritim was 1.5 sen higher each at 16.5 sen, 19 sen, and 10.5 sen, respectively, KNM added one sen to 21.5 sen, and Bumi Armada gained 3.5 sen to 49 sen.
On the index board, the FBM Emas Index surged 101.68 points to 11,796.94, the FBMT 100 Index rose 94.33 points to 11,492.90, the FBM Emas Shariah Index was 92.94 points higher at 13,028.77, the FBM ACE advanced 45.18 points to 10,453.17, and the FBM 70 soared 147.93 points to 15,496.58.
Sector-wise, the Financial Services Index surged 142.61 points to 15,595.35, the Industrial Products and Services Index was 2.66 points better at 187.50 while the Plantation Index fell 33.40 points to 7,130.02.3. – The Edge Market