Bursa rebounds in anticipation of higher US interest rates

Syndicated News
Written by Syndicated News

KUALA LUMPUR, July 19 2019 : Shares on Bursa Malaysia rebounded to open higher today, reversing three days of losses in anticipation of a rise in US interest rates. 

At 9.03 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.71 points to 1,653.64 after closing at 1648.93 yesterday. 

It opened 0.62 of-a-point higher at 1,649.55 earlier today.

Market breadth was positive with 177 gainers to 55 losers, while 161 counters were unchanged, 1,558 untraded and 18 others suspended.

Turnover stood at 99.93 million units worth RM25.44 million.  

Public Investment Bank Bhd in a research note said US policy makers viewed the decision to cut interest rate at this point of time, as wise, with the global economy showing signs of distress. 

“Today is the last day for key Fed policy makers to make statements before the meeting of the Federal Open Market Committee on July 30-31,” it said. 

Central banks worldwide have been cutting interest rates, while many others are considering doing so, including Asian countries in line with the global economic slowdown. 

Meanwhile, the benchmark index is expected to range between 1,636 to 1,660 today, with downside support located at 1,636 and 1,620. 

Top gainers among heavyweights were Sime Darby Plantation which rose 15 sen to RM4.85, as Tenaga Nasional firmed 12 sen to RM13.54, IHH gaining four sen to RM5.80, Digi improving two sen to RM4.96 and MISC rising one sen to RM7.29. 

Of the gainers, Petronas Gas strengthened 14 sen to RM16.94, Complete Logistics gained 12.5 sen to 93.5 sen, as Widetech added six sen to 60 sen, withTop Glove, Can-One and Public Bank all improving four sen to RM4.69, RM3.40 and RM22.90 respectively. 

The FBM Emas Index bagged 25.74 points to 11,741.99 and the FBMT 100 Index gained 27.26 points to 11,571.17. 

The FBM Emas Shariah Index was 38.46 points up at 12,104.12, the FBM 70 gained 11.51 points to 14,801.50, while the FBM Ace decreased 42.19 points to 4,636.76.

Sector-wise, the Financial Services Index perked 12.76 points to 16,565.43 and the Plantation Index advanced 55.34 points to 6,876.46, while the Industrial Products & Services Index was slightly down by 0.20 of-a-point to 155.13. – Bernama



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