Bursa Malaysia Sustains Upward Trajectory, CI Recoups 55.39 Pts Over 2 Days

By Kisho Kumari Sucedaram

KUALA LUMPUR, Aug 7 (Bernama) -- Bursa Malaysia maintained its upward trajectory to end higher for the second consecutive day today, driven by a wave of investor optimism following the United States Federal Reserve's (Fed) reassuring remarks to prevent an economic downturn, according to a dealer.

Add to that, the Bank of Japan (BoJ) also took to the stage to reinforce the central bank’s commitment to monetary easing, following the global stock-market rout on Monday. 

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) put on 17.48 points or 1.11 per cent to 1,591.87 compared with Tuesday's close of 1,574.39. 

The market bellwether opened 1.73 points higher at 1,576.12 and moved between 1,563.77 and 1,596.60 throughout the trading session today. The index has recouped 55.39 points (pts) over the last two days.

On the broader market, gainers thumped decliners 1,061 to 270, with 376 counters unchanged, 710 untraded, and eight others suspended.

Turnover decreased to 5.12 billion units worth RM4.02 billion from Tuesday’s 6.39 billion units worth RM5.31 billion.

SPI Asset Management managing director Stephen Innes said these double doses of reassurance brought much-needed comfort to regional markets, suggesting that both the BoJ and the Fed were ready to leap into action if things get unruly.

"While traders might still be jittery, it is nice to know that the central banks are standing by with their safety nets, ready to catch any unexpected falls," he told Bernama.

Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng believed that the fundamentals of Malaysian equities remain strong and expects buying to continue.

"At the current level, the FBM KLCI remains in an oversold position.

"If the benchmark index can surpass the 1,600 resistance level, the chances of a further uptrend are higher. We spot the immediate resistance at 1,600 followed by 1,620," he added.

Head of investment research at UOB Kay Hian Wealth Advisors Mohd Sedek Jantan said that the data centre is believed to be a significant driver in the market during the second half of the year and will likely continue to attract attention despite the current oversold conditions.

"This could lead to increased bargain hunting. In addition to the strengthening of the ringgit, certain finance stocks are also experiencing an uptrend phase," he said.

Among Bursa Malaysia heavyweights, Maybank and Public Bank firmed four sen each to RM10.14 and RM4.24 respectively, Tenaga Nasional gained 30 sen to RM13.94, CIMB improved 13 sen to RM7.33, and IHH Healthcare added one sen to RM6.22.

Of the actives, Cape EMS perked up three sen to 43.5 sen, MY E.G climbed half-a-sen to 89 sen, Ekovest rose 3.5 sen to 41 sen, while Jiankun slid one sen to seven sen, and Saudee was flat at two sen. 

On the index board, the FBM Emas Index increased 170.42 points to 12,101.70, the FBMT 100 Index advanced 153.82 points to 11,750.81, the FBM Emas Shariah Index put on 166.49 points at 12,214.71, the FBM ACE Index garnered 156.61 points to 5,217.47, and the FBM 70 Index surged 321.21 points to 17,548.37.

Sector-wise, the Energy Index was 27.78 points better at 911.59, the Technology Index added 1.68 points to 69.02, the Utilities Index improved 53.32 points to 1,758.14, the Financial Services Index expanded 166.75 points to 18,060.81 and the Industrial Products and Services Index edged up 2.08 points to 177.94.

The Plantation Index fell 25.93 points to 7,049.51.

The Main Market volume fell to 3.44 billion units valued at RM3.66 billion from 4.07 billion units valued at RM4.87 billion on Tuesday.

Warrants turnover slid to 958.36 million units worth RM124.65 million from 1.54 billion units worth RM196.54 million yesterday.

The ACE Market volume declined to 714.17 million shares valued at RM226.02 million from 773.02 million shares valued at RM246.59 million previously.

Consumer products and services counters accounted for 368.31 million shares traded on the Main Market, industrial products and services (1.25 billion), construction (330.26 million), technology (380.81 million), SPAC (nil), financial services (102.16 million), property (443.22 million), plantation (27.97 million), REITs (24.01 million), closed/fund (87,900), energy (155.47 million), healthcare (109.18 million), telecommunications and media (50.59 million), transportation and logistics (97.81 million), utilities (100.57 million), and business trusts (859,400).

-- BERNAMA