Business

Bursa rebounds as market sentiment improves

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Syndicated News
Written by Syndicated News

KUALA LUMPUR, June 7 2019 : Bursa Malaysia rebounded from Tuesday’s loss to open higher this morning as improved market sentiment fuelled demand for riskier assets.

At 9.07 am, the key FTSE Bursa Malaysia KLCI (FBM KLCI) perked 4.9 points to 1,648.99 from 1,644.56 at 5 pm on Tuesday.

The barometer index opened 6.84 of a point better at 1,650.93.

The market was closed on Wednesday and yesterday for the Hari Raya Adilfitri holiday.

Market breadth was positive as advancers outnumbered decliners 208 to 73, with 146 counters unchanged, 1,463 untraded and 27 others suspended.

Turnover stood at 127.92 million worth RM86.43 million.

Malacca Securities Sdn Bhd said market conditions look to improve with some external events easing during the Hari Raya break and this could provide some near-term impetus for the market to regain some of the lost ground from Tuesday.

As it is, the United States’ tariff threats on Mexico is easing, while the US Federal Reserve’s willingness to use monetary policies to cushion any slowdown in the country’s economy would provide further relief to equities, although the trade spat between the US and China remains no closer to a resolution, it added.

“Therefore, we see Bursa Malaysia’s stocks playing catch up to gains on overseas peers. But, with the FBM KLCI raking up decent gains over the past few sessions and is still overbought, any recovery is likely to be mild with the 1,650 level serving as the near-term hurdle.

“Resistance is at the 1,656 level, while supports are at 1,640-1,642, followed by 1,639,” the reserach firm said in a note.

Malacca Securities also said after the incessant fall of late, lower liners and broader market shares are finding support, and this could provide some room for near-term upsides as conditions are seeing some improvement.

“Still, we think any gains will be measured, as fresh buying is still lacking,” it added.

Among heavyweights on Bursa, Maybank rose four sen to RM9.01, Public Bank increased eight sen to RM23.50, CIMB gained three sen to RM5.35 and IHH Healthcare advanced nine sen to RM5.52.

However, Tenaga gave up 16 sen to RM12.66, while Petronas Chemicals trimmed three sen to RM8.25.

Of the actively-traded stocks, Ekovest perked two sen to 79.5 sen, Bumi Armada and AirAsia X bagged one sen each to 21 sen and 24 sen respectively, while Tiger Synergy inched up half-a-sen to 5.5 sen.

The FBM Emas Index rose 35.89 points to 11,574.48, the FBMT 100 Index increased 36.72 points to 11,439.43 and the FBM Emas Shariah Index improved 22.57 points to 11,747.87, the FBM 70 improved 57.02 points to 14,231.8 and the FBM Ace bagged 29.09 points to 4,261.08.

Sector-wise, the Financial Services Index was 57.1 points higher at 16,873.67 and the Industrial Products & Services Index added 0.20 of-a-point to 159.13, but the Plantation Index slipped 8.63 points to 6,846.52.  – Bernama

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News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.