KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Shares of Guotai Junan Securities Co and Haitong Securities Co surged after the announcement of their merger terms , which will create a state-backed brokerage with US$226 billion (RM969.99 billion) in assets. This new entity is set to compete with Wall Street firms expanding in China. On Thursday, shares of both companies surged more than 100% in Hong Kong and by the 10% daily limit in Shanghai, as they caught up with the broader rally in Chinese and Hong Kong stocks driven by China’s recent stimulus measures . The deal, which was suspended on Sept 6, involves a share swap , where Guotai Junan will issue shares to Haitong’s holders at a 0.62 to 1 ratio , offering a 32% premium in Hong Kong. Guotai Junan also plans to raise 10 billion yuan from its controlling shareholder to support the merger. The combined entity will have 1.6 trillion yuan in assets, surpassing Citic Securities Co as the largest brokerage in China, with operations spanning Hong Kong, Singapore, New Y...