KUALA LUMPUR, April 1 (Bernama) -- Bursa Malaysia closed higher on Wednesday, with the key index rising 1.10 per cent, in line with firm gains across regional markets following a strong rally on Wall Street overnight, said an analyst. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the improvement in sentiment was underpinned by easing geopolitical concerns and a decline in oil prices. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increase 18.54 points or 1.10 per cent to 1,708.90 from Tuesday’s close of 1,690.36. The benchmark index opened 25.58 points higher at 1,715.94, marking its intraday high, and hit a low of 1,700.20 during the mid-morning session. The broader market was positive, with gainers leading decliners 780 to 444. A total of 475 counters were unchanged, 926 untraded and 11 suspended.
KUALA LUMPUR (Oct 1): The FBM KLCI closed 5.53 points or 0.35% higher today, led by Sime Darby Bhd and Sime Darby Plantation Bhd share price gains and after Asian stock markets tracked US equities' overnight rise.
The ringgit weakened against a strengthening US dollar, amid US-China trade war and Brexit concerns.
At 5pm today, the KLCI closed higher at 1,589.44. Sime Darby Bhd ended up five sen or 2.22% at RM2.30 to become the top percentage gainer among the 30 KLCI stocks, followed by Sime Darby Plantation. Sime Darby Plantation rose 10 sen or 2.11% to RM4.83.
“The market is trying to bottom up, but still remains cautious," TA Securities Holdings Bhd senior technical analyst Steven Soo told theedgemarkets.com.
Reuters reported today that globally, US stocks climbed on Monday, helped by gains in Apple, Microsoft and Merck & Co, as investors set aside worries about the U.S.-China trade war.
It was reported that Asian share prices ticked up on Tuesday, as some investors clung to hopes that the fourth quarter will bring progress in resolving the US trade war that's cast a shadow over the global economy. It was reported that Chinese markets will be shut for a week, starting Tuesday, to mark 70 years since the founding of the People's Republic of China.
In currency markets, the US dollar bulldozed almost everything in its path on its way to a 29-month high on Tuesday, as a blizzard of soft global data left the US economy, as the only one still looking in reasonable health, according to Reuters.
In Malaysia, Hong Leong Investment Bank Bhd wrote in a note today that in wake of the prevailing risk-off sentiment, appetite for US dollar assets has strengthened, amid concerns negotiations between the US and China on Oct 10-11 will not lead to a complete trade deal and possibility of a no-deal Brexit.
Hong Leong said appetite for US dollar assets also strengthened, amid excessive financial market volatility and lingering geopolitical tensions, coupled with political turmoil in the US, after the start of an impeachment inquiry into US President Donald Trump.
"Ringgit softness may persist towards RM4.23-4.28 levels (against the US dollar). Given the weak ringgit undertone, we reckon that export plays could return," Hong Leong said.
At the time of writing, the ringgit weakened to 4.1930 against the US dollar.
Source: The Edge
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