KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Alibaba Group Holding Ltd’s stock rose sharply in Hong Kong on Tuesday after it became directly accessible to mainland Chinese investors through the Stock Connect program, which links the Shanghai and Shenzhen exchanges to the Hong Kong Stock Exchange.
Key Takeaways:
Inclusion in Stock Connect Program: Alibaba's shares were added to the Stock Connect program for the first time, allowing mainland Chinese investors to trade the stock directly. This led to a significant gain of up to 5.2% in Alibaba's stock price, with trading volume more than double the three-month full-day average by mid-morning.
Expected Inflows and Impact on Valuation: The inclusion is anticipated to attract around $20 billion in inflows from mainland investors into next year, potentially leading to a stake of over 10% in Alibaba held by these investors. This should help narrow Alibaba’s valuation discount compared to its rival, PDD Holdings Inc, according to Bloomberg Intelligence analysts.
Boost Amid Weak Performance and Market Conditions: Alibaba's inclusion in the Stock Connect program comes as a positive development following a revenue miss in the second quarter, attributed to weak consumer spending in China. The stock has risen 7.5% in Hong Kong this year, outperforming the Hang Seng Tech Index, which is down 9%.
Previously, Alibaba could not join the Stock Connect due to its secondary listing status in Hong Kong. However, after upgrading to a dual-primary listing status in both Hong Kong and New York in August, it became eligible for inclusion, providing a timely boost to its market accessibility and investor base.
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