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Tuesday, May 2, 2017

Market Daily Report: FBM KLCI rises on recovery in banking sector






KUALA LUMPUR (May 2): The FBM KLCI rose today on bullish sentiment, following signs the banking sector is on its way to recovery.

The benchmark index closed 10.41 points or 0.59% higher at 1,778.47.

“The latest loan growth as well as interest margin will be pointing towards stronger earnings growth this quarter for the banks,” said Areca Capital Sdn Bhd chief executive officer Danny Wong told the edgemarkets.com.

He said he hopes to see a re-rating of the banks by research houses, which would depend on the banks’ upcoming results.

Wong said the banks’ performances over the past two quarters indicated that they have bottomed, and they are expected to attract foreign investors, amid the current recovery. “The banking sector remains the main magnet for foreign investors," he said.

Bursa Malaysia saw a total of 3.88 billion shares, worth RM3.48 billion, traded today. There were 594 gainers and 411 decliners.

Reuters reported Japan's Nikkei share average rose to six-week highs today in a holiday-shortened week, getting a lift from robust earnings and gains on Wall Street.

“Wall Street climbed on Monday, boosted by gains in Apple and other big technology stocks that more than offset weak U.S. economic data, and pushed the Nasdaq Composite to another record high,” it added.

The Nikkei finished 0.7% higher at 19,445.70, its highest close since March 21. It added 1.3% for the week. Tokyo markets will be closed for three days from tomorrow for a string of holidays known as Golden Week.

Meanwhile, South Korea’s Kospi rose 0.65%, while the Hong Kong Hang Seng Index was up 0.33%.

Source: The Edge

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