Business

Trade optimism bolster Bursa

Syndicated News
Written by Syndicated News

KUALA LUMPUR, Dec 13 2019 : Bursa Malaysia made a strong opening today with every sector in positive territory after US President Donald Trump expressed optimism about a potential trade deal with China.

At 9.08 am, FTSE Bursa Malaysia KLCI (FBM KLCI) increased 9.08 points or 0.6 per cent to 1,576.42 versus 1,567.34 recorded yesterday.

The index opened 9.17 points better at 1,576.51.

Market breadth was positive as advancers overtook decliners 215 to 77,  while 195 counters unchanged, 1,493 untraded and 18 others suspended. 

Turnover amounted to 144.29 million shares worth RM65.89 million.

Malacca Securities Sdn Bhd said Wall Street also rallied after hitting new highs on increasing possibilities of trade de-escalation as US and China reportedly inched closer draws to an initial trade deal.

Gains in the financials-related shares pushed the Dow (+0.8 per cent) and S&P500 (+0.9 per cent) to record levels, following stronger Treasury yields, while the Nasdaq gained 0.7 per cent.

Optimism for a US-China trade deal was further raised when Trump tweeted: “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”.

Malacca Securities said local market may continue to drive towards the 1,580 level, followed by the 1,590 level.

“We reckon that the lower liners, particularly the technology-heavy FBM ACE index may see stronger trading interests on the back of rotational plays.

“After close to two months of consolidation, the technology index is poised for another wave of rally amid the recovery in global semiconductor sales delivered in October 2019,” it said in a note.

Latest updates from the United Kingdom which suggested Conservative leader Boris Johnson was en route to a commanding win in the country’s general election has also underpinned market sentiment.

Among heavyweights, Tenaga rose 12 sen to RM13.26, Maybank was six sen higher at RM8.57, IHH added seven sen to RM5.43 and Hong Leong Bank increased 24 sen to RM17.00.

In contrast, Maxis dropped one sen to RM5.15 and Petronas Gas went down two sen to RM16.38 after yesterday’s rally.

Of actives, Dynaciate edged up one sen to 9.5 sen, Ekovest was 1.5 sen better at 82.5 sen and Xideland was unchanged at 11 sen.

The FBM Emas Index increased 54.85 points to 11,213.88 and the FBM Emas Shariah Index appreciated 62.38 points to 11,855.51 while the FBMT 100 Index up 54.37 points to 11,013.55.

The FBM Ace went up 8.03 points to 4,983.69 and the FBM 70 improved 31.95 points to 14,017.37.

Sector-wise, the Financial Services Index jumped 85.13 points to 15,279.27, the Industrial Products and Services Index rose 0.52 of-a-point to 151.18 and the Plantation Index added 30.45 points to 7,530.77.- Bernama

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Syndicated News

Syndicated News

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