Bursa Malaysia Ends On Positive Note, Lifted By Strong Buying Interest, 2Q GDP

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, Aug 16 (Bernama) -- Bursa Malaysia ended the week on a positive note, thanks to encouraging economic data in Malaysia and from the United States (US), said an analyst. 

The local market was driven by strong buying in energy, healthcare, and industrial products sectors, he added.

Malaysia saw a robust gross domestic product (GDP) expansion of 5.9 per cent in the second quarter of 2024 (2Q 2024), exceeding the earlier advanced estimate of 5.8 per cent, bolstered by resilient household spending, vigorous investment activities and a significant boost in tourism arrivals. 

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 0.68 per cent or 10.96 points better at 1,623.90 from Thursday’s close of 1,612.94.

The index kicked off the day with a gain of 9.26 points to 1,622.20 and moved between 1,617.18 and 1,624.71 throughout the session.

In the broader market, gainers trounced decliners 802 to 324, with 451 counters unchanged, 909 untraded and 23 others suspended.

Turnover however fell to 3.22 billion units valued at RM2.75 billion from Thursday’s 3.54 billion units worth RM2.76 billion.

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan told Bernama that the industrial products and manufacturing stocks were the top performers within the FBM KLCI, reflecting the positive GDP data which showed increased private sector spending and improved net exports.

Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour today said the central bank views Malaysia’s growth as being on track to end the year near the upper end of the 4.0-5.0 per cent forecast range.

The country’s economy expanded by 4.2 per cent in 1Q 2024, bringing growth in the first half of the year to an average of 5.05 per cent. The GDP grew by 2.9 per cent in 2Q 2023. 

“The 5.9 per cent GDP growth in 2Q 2024 is the highest since 4Q 2022,” the governor told a press conference.

Meanwhile, Mohd Sedek said the FBM KLCI's rise was also sparked by a decrease in concerns of a recession in the US and the expectation of a more accommodative stance from the Federal Reserve (Fed).

“The upward trend in the market today reflects the positive performance of regional markets and Wall Street. These gains have alleviated investor concerns about a potential recession.

“Investor sentiment, which had become more cautious last week, has improved. Following a difficult beginning to the month, the market has made a strong recovery, regaining important technical support levels,” he said.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the major regional indices also closed higher, tracking the strong rally on Wall Street overnight as solid US economic data reduced recession concerns, with interest rate cut bets still intact.

The Asian region also felt the spillover effect of the stimulus from the People’s Bank of China, said Thong. 

On Bursa Malaysia, heavyweights Maybank ticked up 8.0 sen to RM10.26, Public Bank and Tenaga added 2.0 sen each to RM4.29 and RM13.86 respectively, CIMB advanced 13.0 sen to RM7.66, and IHH was flat at RM6.30. 

As for the most active counters, Cape EMS eased 1.0 sen to 42 sen, SP Setia gained 1.0 sen to RM1.30, Pestech increased 3.0 sen to 20 sen, and Hextar Healthcare was flat at 24 sen. 

Among the top gainers, Dutch Lady surged RM1.24 to RM31.84, Petronas Chemicals jumped 33.0 sen to RM5.63 and Panasonic Manufacturing rose 30.0 sen to RM19.96.

On the index front, the FBM Emas Index leapt 95.47 points to 12,335.13, the FBMT 100 Index put on 88.41 points to 11,976.09 and the FBM Emas Shariah Index improved 90.32 points to 12,402.04. 

The FBM 70 Index soared 159.80 points to 17,843.65, and the FBM ACE Index was 86.91 points higher at 5,398.98.

Sector-wise, the Financial Services Index jumped 131.66 points to 18,419.72, the Plantation Index increased 41.61 points to 7,184.00, the Industrial Products and Services Index perked up 3.17 points to 183.79, and the Energy Index was 23.58 points better at 952.10.

The Main Market volume slid to 1.80 billion units worth RM2.477 billion from 1.98 billion units valued at RM2.474 billion on Thursday.

Warrants turnover declined to 949.16 million units valued at RM116.02 million from 1.13 billion units worth RM139.95 million yesterday.

The ACE Market volume expanded to 467.90 million shares worth RM163.26 million from 428.06 million shares valued at RM154.42 million previously.

Consumer products and services counters accounted for 185.05 million shares traded on the Main Market, industrial products and services (435.02 million), construction (120.35 million), technology (193.92 million), SPAC (nil), financial services (85.85 million), property (335.68 million), plantation (10.32 million), REITs (7.18 million), closed/fund (25,000), energy (138.23 million), healthcare (146.81 million), telecommunications and media (26.68 million), transportation and logistics (58.82 million), utilities (60.31 million), and business trusts (214,200).

-- BERNAMA