KUALA LUMPUR (March 21): The FBM KLCI rose 5.26 points or 0.3% on late buying of index-linked plantation entities Kuala Lumpur Kepong Bhd (KLK) and IOI Corp Bhd shares. The KLCI had also tracked Asian share gains.
At 5pm, the KLCI closed at 1,754.67 points after falling to its intraday low at 1,748.82 point during its final trading minutes. KLK shares added two sen to RM24.82 while IOI Corp rose two sen to RM4.70.
KLK and IOI Corp shares had earlier fallen with lower crude palm oil prices as a stronger ringgit versus the US dollar made the commodity more expensive for foreign buyers. At 5.37pm, the exchange rate was at 4.4255.
Reuters reported that benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange were down 0.3 percent at RM2,772 (US$626.16) a tonne at the midday break. Palm also tracks the movement of other related vegetable oils as they compete for a share in the global edible oils market.
In Malaysia, analysts told theedgemarkets.com the stock market had gained on foreign buying. “The trading volume is still high today, though it is lower compared with yesterday’s trading volume of about six billion shares. I think the trading is also supported by positive sentiment on news that foreign investors are buying,” Mercury Securities Sdn Bhd research head Edmund Tham said.
"If investors are banking on election play, they should focus on government-linked counters as well as construction counters," Tham said.
Across Bursa Malaysia, 4.58 billion shares worth RM3.29 billion were traded. Gainers beat decliners by 496 versus 477 respectively. Yesterday, the trading volume was 6.02 billion shares.
Today, Malaysian shares had also tracked Asian equity gains. Hong Kong’s Hang Seng rose 0.37% while South Korea’s Kospi was 0.99% higher.
Reuters reported that Asian shares hit 21-month highs on Tuesday while the dollar and US bond yields were on the back foot on the prospect of a less-hawkish Federal Reserve policy trajectory.
Source: The Edge