KUALA LUMPUR, Feb 11 (Bernama) -- Bursa Malaysia ended higher today as buying on selected blue chips continued, said a brokerage. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.85 points or 0.51 per cent to 1,756.39 from Tuesday’s close of 1,747.54. The barometer index opened 3.69 points higher at 1,751.23 before moving as low as 1,745.51 in early trade to as high as 1,757.15 during the mid-afternoon session. Market breadth was positive with gainers leading losers 575 to 474, while 549 counters were unchanged, 1,087 untraded and 11 suspended. Turnover expanded to 2.55 billion units valued at RM3.06 billion from yesterday’s 2.19 billion units valued at RM2.35 billion.
KUALA LUMPUR (March 4): The FBM KLCI closed up 11.31 points or 0.76% while the ringgit strengthened in an apparent reaction to Malaysia and the US' interest rate cuts to mitigate the economic impact from the global Covid-9 outbreak. The emergency US rate cut is seen prompting money flow from US dollar-based assets to Asian markets for better returns.
At Bursa Malaysia, the KLCI closed up at 1,489.95 at 5pm. In currency markets, the ringgit strengthened to 4.1790 against a weakening US dollar at the time of writing.
On Tuesday (March 3), the US Federal Reserve's Federal Open Market Committee lowered the federal funds rate by 50 basis points. After the cut, the federal funds rate ranges from 1% to 1.25%, the Federal Reserve said.
"The fundamentals of the US economy remain strong. However, the coronavirus (Covid-19) poses evolving risks to economic activity," the Federal Reserve said in a statement.
Bank Negara Malaysia shares the same sentiment when it said on Tuesday (March 3) that its monetary policy committee decided to reduce the overnight policy rate by 25 basis points to 2.5% to provide a more accommodative environment to support the projected improvement in Malaysia's economic growth amid the global Covid-19 outbreak.
Across Bursa today, 2.99 billion shares worth RM2.37 billion were traded.
Top gainers included Petronas Chemicals Group Bhd and Hartalega Holdings Bhd.
Most active stocks included Eden Inc Bhd with some 49 milion shares traded. Eden shares closed up two sen or 8.7% at 25 sen.
Besides interest rate cuts and the Covid-19 outbreak, Malaysian share trade dynamics also took cue from the nation's political uncertainties, according to analysts.
"While stocks should recover further on optimism coordinated stimulus from major global central bankers should offset the negative economic impact from the coronavirus outbreak, persistent worries over domestic political stability is likely to cap gains," TA Securities Holdings Bhd wrote in a note today.
Malaysia has delayed its Parliament sitting by more than two months, forcing former leader Tun Dr Mahathir Mohamad to wait until May for a no-confidence vote against new premier Tan Sri Muhyiddin Yassin.
It was reported that Parliament will be in session from May 18 to June 23, from March 9 initially, with this year’s second and third sitting also delayed to July 27 and September 28, respectively.
"The delay will give Muhyiddin extra time to shore up support and prove his majority in the divided Parliament. It’s also set to extend the period of uncertainty following the political turmoil that saw the former ruling coalition implode last week," Bloomberg reported.
Source: The Edge
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