KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Market Daily Report: FBM KLCI closes above 1,400 level on optimism of US kickstarting economic activity
KUALA LUMPUR (April 17): The FBM KLCI rose actively today to close over the 1,400 level after more than one month, tracking regional gains amidst optimism on US plans to resume economic activities as it works to contain the Covid-19 spread.
At 5pm, the benchmark index, which had been trading in green territory throughout the day, closed 20.81 points or 1.5% higher at 1,407.34, with a high volume of 6.31 billion shares worth RM3.02 billion.
Market breadth was positive with 660 gainers against 222 losers.
The list of top gainers was dominated by consumer stocks such as Dutch Lady Milk Industries Bhd, Panasonic Manufacturing Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, British American Tobacco (Malaysia) Bhd, and Heineken Malaysia Bhd.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the FBM KLCI advanced alongside gains across its regional peers following US plans to gradually reopen economic activities amid signs of a flattening of the Covid-19 cases curve.
“The positive news has also override the weakness in China economics data that saw 1Q2020 gross domestic product (GDP) sank -6.8% y-o-y, marking the first contraction since 1992,” he told theedgemarkets.com.
Should the FBM KLCI stay afloat the 1,400 psychological level, Leong said there could be recovery extending towards the 1,455 level over the near term.
“However, we do caution that the sluggish crude oil prices and the persistent selling from foreign funds may leave gains to be measured,” he added.
Trading was largely positive in the region, with the Nikkei 225 index advancing 3.15% to 19,897 points, while South Korea’s Kospi index rose 3.09% to 1,914.53 points. In China, the Hang Seng index climbed 1.56% to 24,380 points while the Shanghai Composite index rose 0.66% 2,838.49 points.
Reuters said Asian stocks gained on Friday as President Donald Trump's plans to gradually re-open the US economy offset data that showed China suffered its worst economic contraction on record due to the coronavirus outbreak.
Source: The Edge
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