Market Daily Report: Bursa hits one-month high; surging oil prices, interstate resumption lift sentiment

 

KUALA LUMPUR (Oct 11): Surging oil prices, which have lifted energy index by 6.5%, and optimism over domestic economic recovery, saw Bursa Malaysia ending at a one-month high on Monday.

The FTSE Bursa Malaysia KLCI (FBM KLCI) gains for five days in a row, adding 6.92 points to 1,570.82 at 5pm on Monday, compared with 1,563.9 at Friday’s close.

The bellwether index opened 3.98 of-a-point better at 1,567.88 and fluctuated between 1,567.88 and 1,575.63 throughout the morning trading session.

On the broader market, gainers outpaced decliners 737 to 401, while 371 counters were unchanged, 749 untraded and six others suspended.

Turnover increased to 6.9 billion units worth RM3.87 billion from 4.99 billion units worth RM3.34 billion on Friday. 

Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said buying support was seen particularly in oil and gas, bank and plantation counters.

“We reckon the full opening of interstate travel within the country is one of the contributing factors to the positive investor sentiment.

“Investors are also bullish on oil and gas, as well as plantation stocks, given the strong crude oil and crude palm oil prices,” he told Bernama.

Leng said Rakuten Trade anticipates the index to trend around the 1,560-1,580 range for the week.

“From a technical point of view, we will see immediate resistance at 1,580 followed by the psychological resistance at around 1,600 while immediate support is at 1,550,” he noted.

Regionally, the markets exhibit a mixed trend following fresh worries that the US Federal Reserve may begin tapering as early as November.

These worries emerged after US job growth fell to the slowest pace of the year in September amid Covid-19. 

The world’s largest economy created 194,000 jobs last month, down from 366,000 jobs added in August.

At home, Petronas Chemicals Group Bhd continued to lead heavyweights, gaining seven sen to RM8.75, while Malayan Banking Bhd advanced 11 sen to RM8.16, Press Metal Aluminium Holdings Bhd rose four sen to RM6.13, and IHH Healthcare Bhd inched up five sen to RM6.68.

CIMB Group Holdings Bhd increased 10 sen to RM5, Public Bank Bhd was three sen higher at RM4.11 and Genting Malaysia Bhd edged up two sen to RM3.15.

As for active counters, Serba Dinamik Holdings Bhd added four sen to 40.5 sen, Borneo Oil Bhd remained flat at three sen, Kanger International Bhd improved half-a-sen to 6.5 sen, AirAsia Group Bhd jumped nine sen to RM1.28, while MMAG Holdings Bhd eased half-a-sen to 10 sen.

On the index board, the FBM Emas Index perked up 70.52 points to 11,572.28, the FBMT 100 Index rose 55.8 points to 11,213.97, the FBM Emas Shariah Index picked up 46.6 points to 12,686.29, the FBM 70 climbed 100.61 points to 15,196.03, and the FBM ACE added 66.29 points to 7,206.71.

Sector-wise, the Financial Services Index firmed 140.9 points to 15,353.46, the Industrial Products and Services Index bagged 1.31 points to 210.77, and the Plantation increased 78.38 points to 7,043.41.

The Main Market volume widened to 4.33 billion shares worth RM3.28 billion compared with 3.27 billion shares worth RM2.71 billion on Friday.

Warrants turnover slipped to 415.43 million units worth RM61.55 million against 448.28 million units worth RM67.58 million.

The volume on the ACE Market expanded to 2.15 billion shares worth RM533.57 million from 1.28 billion shares worth RM561.33 million previously.

Consumer products and services counters accounted for 830.8 million shares traded on the Main Market, industrial products and services (1.09 billion), construction (156.72 million), technology (396.53 million), SPAC (nil), financial services (81.26 million), property (295.49 million), plantation (82.63 million), REITs (12.61 million), closed/fund (166,200), energy (1.15 billion), healthcare (43.69 million), telecommunications and media (26.65 million), transportation and logistics (149.78 million), and utilities (14.46 million).

 

Source: The Edge