Bursa Malaysia Closes Higher On Easing Geopolitical Tensions
By Karina Imran
KUALA LUMPUR, May 6 (Bernama) -- Bursa Malaysia closed higher today as easing West Asia tensions lifted overall market sentiment and encouraged a broader risk-on tone across regional equities, said an analyst.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 9.44 points, or 0.54 per cent, to 1,756.87 from Tuesday’s close of 1,747.43.
The benchmark index, which opened 1.65 points higher at 1,749.08, moved between 1,746.80 and 1,760.30 during the day.
Market breadth was positive with gainers beating losers 785 to 503. A total of 535 counters were unchanged, 809 untraded, and 10 suspended.
Turnover expanded to 3.98 billion units worth RM3.97 billion compared with 2.86 billion units worth RM2.59 billion yesterday.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the benchmark index was supported by gains in banking, infrastructure, shipping and selected energy-linked counters, while stronger participation in the FBM70 and FBM Small Cap indices reflected improving domestic market breadth.
"Investor sentiment was further supported by a pullback in oil prices after signs of reduced escalation risk involving Iran, with Brent crude declining below US$107 per barrel as markets increasingly priced in the possibility of de-escalation and easing supply disruptions around the Strait of Hormuz.
"The renewed strength in US equities, which continue to trade near record highs, has also contributed to a gradual return of foreign flows into emerging markets, including Malaysia," he told Bernama.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said overall trading volume has yet to show a significant increase despite the stronger market performance, suggesting that investors remain cautious and are not aggressively chasing the rally at current levels.
He said while the near-term outlook remains constructive, intermittent profit-taking could still emerge as the benchmark index approaches the 1,760-1,770 resistance zone near its recent high.
"Investors are advised to continue monitoring developments in West Asia closely, as the conflict has not been fully resolved and any renewed escalation could quickly affect market sentiment," he said.
Thong expects the FBM KLCI to trade within the 1,730-1,770 range for the remainder of the week.
Among heavyweights, Maybank and IHH Healthcare added two sen each to RM11.22 and RM8.85, respectively. Both Public Bank and CIMB Group went up four sen to RM4.79 and RM7.93, respectively, while Tenaga Nasional was flat at RM14.80.
On the most active list, Zetrix AI inched up half-a-sen to 87 sen, YTL Corp surged 22 sen to RM2.31, V.S. Industry slid one sen to 19 sen, and Manforce inched down half-a-sen to 37.5 sen.
Among the top gainers, Malaysian Pacific Industries garnered RM3.90 to RM41.40, Unisem soared 27 sen to RM3.77, YTL Power International advanced 23 sen to RM4.17, and Sunway Construction improved 22 sen to RM7.10.
Among the top losers, Nestle dropped 80 sen to RM100.90, Fraser & Neave Holdings fell 46 sen to RM29.10, Petronas Dagangan and IOI Properties gave up 12 sen each to RM20.22 and RM4.21, respectively.
On the index board, the FBM Emas Index increased 76.15 points to 12,963.49, the FBM Top 100 Index soared 75.77 points to 12,807.39, the FBM Emas Shariah Index climbed 58.72 points to 12,925.27, the FBM Mid 70 Index garnered 138.86 points to 18,408.34, and the FBM ACE Index surged 60.93 points to 4,662.00.
By sector, the Industrial Products and Services Index shed 0.15 of-a-point to 197.52, the Plantation Index weakened 39.23 points to 8,967.97, and the Energy Index shed 3.84 points to 831.79, while the Financial Services Index gained 101.89 points to 20,236.22.
The Main Market volume increased to 2.28 billion units valued at RM3.64 billion from 1.67 billion units valued at RM2.38 billion on Tuesday.
Warrants turnover expanded to 1.21 billion units worth RM166.34 million from 871.29 million units worth RM113.70 million previously.
The ACE Market volume swelled to 497.99 million units valued at RM166.82 million from 319.05 million units valued at RM96.14 million yesterday.
Consumer products and services counters accounted for 289.98 million shares traded on the Main Market, industrial products and services (436.58 million), construction (205.75 million), technology (384.77 million), financial services (89.28 million), property (259.66 million), plantation (33.42 million), real estate investment trusts (23.43 million), closed-end fund (66,500), energy (228.45 million), healthcare (78.78 million), telecommunications and media (83.58 million), transportation and logistics (38.52 million), utilities (124.04 million), and business trusts (258,000).
-- BERNAMA