KUALA LUMPUR, Oct 20 (Bernama) -- Bursa Malaysia’s benchmark index edged higher at the close as bargain hunting emerged following Monday’s sharp sell-off, although it narrowly failed to reclaim the 1,600 level, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 3.83 points, or 0.24 per cent, to 1,599.58 from Monday’s close of 1,595.75. The index opened 3.18 points lower at 1,592.57, marking its intraday low, and reached an intraday high of 1,602.83 in early trading. On the broader market, decliners outnumbered gainers 751 to 331, while 499 counters were unchanged, 1,259 untraded and 10 suspended. Turnover rose to 2.86 billion units worth RM2.42 billion against Monday’s 2.49 billion units worth RM2.38 billion.
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| FBM KLCI close higher by 1.4 points or 0.1% at 1,628.66 pts |
The FBM KLCI gained 1.4 points or 0.1%, along with Asian share markets, as crude oil's price fall curbs inflation and U.S. interest rate hike prospects, according to a report by TheEdgeMarkets.
At 5 p.m., the KLCI closed at 1,628.66 points.
Across Asian stock markets, Hong Kong’s Hang Seng gained 0.47%. while South Korea’s Kospi rose 0.19%.
Reuters reported oil prices fell on Monday, adding to Friday's steep losses as doubts re-emerged over the ability of major producers to agree on output cuts at a planned meeting on Wednesday aimed at reining in global oversupply. Brent crude futures fell 2% at one point, but regained ground to trade down 35 cents or 0.74% at US$46.89 per barrel at 0749 GMT.
In Malaysia, Kenanga Investment Bank Bhd research head Chan Ken Yew said the KLCI was still trapped in a rangebound pattern, as investors eyed a potential interest rate hike by the U.S. Federal Reserve next month.
The Federal Reserve's next Federal Open Market Committee (FOMC) meeting will be on Dec 13 and Dec 14 this year. The meeting will be the last for 2016.
Earlier, Federal Reserve Chair Janet Yellen had said U.S. interest rates might rise "relatively soon". Yellen's comment was in anticipation of higher U.S. inflation and interest rates, due to U.S. President-elect Donald Trump's planned expansionary fiscal policies.
Today, Chan said: “There is not much catalyst for the KLCI, currently. Investors are still waiting for the FOMC meeting next month."
“We still see the index to be rangebound, with support at 1,600 and 1,620. There could be some buying, if the index breaks the 1,640 – 1,650 level,” he said.
Across Bursa Malaysia, 1.32 billion shares. worth RM1.44 billion. were traded.
Decliners beat gainers at 594 versus 225, respectively.
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