Bursa bounces as China’s better-than-expected economic data lifts sentiment

KUALA LUMPUR: Bursa Malaysia bounced to close at its intra-day high today as China’s better-than-expected latest economic data lifted regional sentiment.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) bagged 9.45 points to 1,459.03 from Thursday’s close of 1,449.58. The index opened 0.49 points lower at 1,449.09 and hit an intra-day low of 1,448.75.

On the broader market, gainers outnumbered decliners 550 to 387 while 428 counters were unchanged, 1,008 untraded and 23 suspended.

Turnover jumped to 4.02 billion units worth RM4.31 billion against Thursday’s 2.96 billion units worth RM2.20 billion.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said regional market undertones continued to improve as investors cheered the release of China’s retail sales and industrial output figures for August that far surpassed economists’ expectations. The country’s retail sales grew by 4.6 per cent last month compared to a year ago, while industrial production expanded 4.5 per cent.

Market sentiments also got a boost from China’s move late Thursday to cut its reserve requirement ratio by 25 basis points, injecting around US$69 billion to aid its economic recovery.

“Market confidence is also on the rise as investors anticipate a halt in the US interest rate hike. As a result, we expect the domestic benchmark index to continue its upswing,” he told BK.

At the close, Petronas Chemicals led heavyweight counters, surging 26 sen, or 3.63 per cent, to RM7.43, followed by Kuala Lumpur Kepong, which surged RM1.60, or 7.37 per cent, at RM23.32.

Sime Darby Plantations jumped 18 sen, or 4.09 per cent, to RM4.58 while CIMB and Tenaga Nasional were nine sen better each at RM5.78 and RM10.06, respectively.

Of the actives, Sapura Energy eased half a sen to 5.5 sen while YTL was flat at RM2.08 and Ekovest gained 2.5 sen to 55 sen. – BK