KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
KUALA LUMPUR (June 2): The FBM KLCI closed 17.55 points or 1.18% higher at 1,507.69 today in an apparent reaction to Malaysia’s short-term economic recovery plan announcement, which led to share price spikes in KLCI linked companies like Genting Bhd, Genting Malaysia Bhd and Malaysia Airports Holdings Bhd (MAHB). Analysts said expectation that Malaysia’s movement control order (MCO) will end next Tuesday (June 9) is also boosting investor sentiment.
Meanwhile, Bursa Malaysia’s Energy Index, which tracks shares of oil and gas (O&G)-related companies, was the top percentage gainer among the exchange’s indices. It finished up 5.15%.
Within the 30-stock KLCI, Genting Bhd’s share price closed up 43 sen or 10.75% at RM4.43, Genting Malaysia settled up 24 sen or 10.17% at RM2.60 while MAHB ended 72 sen or 14.2% higher at RM5.79.
At a glance, the KLCI and shares of these companies rose sharply at about 3pm when news broke that the short-term economic recovery plan for the June to December 2020 period will be launched by Prime Minister Tan Sri Muhyiddin Yassin this month. Bernama, quoting Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, reported that the plan would still focus on three key objectives, namely to empower people, propel businesses, and stimulate the economy.
Speaking to theedgemarkets.com, Rakuten Trade Sdn Bhd vice-president of research Vincent Lau said the share price rise in Genting-related counters and MAHB could be due to investors anticipating economic activity to pick up as they foresee Malaysia’s conditional MCO ending next Tuesday.
“So far, June has started off on a strong note, with daily reported Covid-19 cases remaining low. The MCO ending is also boosting investor sentiment in the market. The government’s anticipated economic recovery plan to be announced this week will also be of focus,” Lau said.
Across Bursa, 9.62 billion securities worth RM6.21 billion were traded. Gainers led decliners by 596 to 428 respectively as O&G-related shares like Hibiscus Petroleum Bhd and Bumi Armada Bhd saw their share prices closed up among Bursa’s most active stocks on higher crude oil prices.
Hibiscus and Bumi Armada registered a volume of some 304 million and 278 million shares respectively. Hibiscus’ share price ended up nine sen or 15.13% at 68.5 sen while Bumi Armada rose 2.5 sen or 10.87% to 25.5 sen.
In global crude oil markets, Reuters reported that oil prices rose on Tuesday on expectations that major producers would agree to extend output cuts that have shored up prices, during a video conference likely to be held this week.
"Benchmark Brent crude rose 2.3%, or 88 cents, to US$39.20 a barrel as of 0840 GMT. US West Texas Intermediate crude climbed 2%, or 72 cents, to US$36.16 a barrel,” the newswire reported.
Malaysia’s MCO, which was initially scheduled between March 18 and 31, 2020, requires non-essential businesses to stop operations, while the public has been ordered to stay at home to curb the Covid-19 outbreak.
On March 25, Muhyiddin said the government decided to extend the MCO until April 14, because updates from the National Security Council and Health Ministry indicated an increase in Covid-19 cases. On April 10, Muhyiddin said the government was extending the MCO until April 28.
On April 23, he said the MCO will be extended for another two weeks until May 12.
On May 10, the premier said the MCO will be extended to June 9.
Source: The Edge
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