FBM KLCI closes higher on improved sentiment

KUALA LUMPUR: Bursa Malaysia has recouped last week’s losses to close in the positive territory in line with the strong performance of regional peers amid improved regional market sentiment, according to an analyst.

At 5pm, the FBM KLCI improved by 9.08 points or 0.63% to 1,459.43 from 1,450.35 at last Friday’s close.

The market bellwether opened 0.72 of a point higher at 1,451 and hit its intraday high at 1,464.

The broader market was also positive with gainers beating losers 545 to 405, while 452 counters were unchanged, 902 untraded and 53 others suspended.

Turnover stood at 3.29 billion units worth RM2.49bil.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI delivered an impressive performance, thanks to the strong backing of local institutions and continuous buying from foreign funds.

He said the strong showing is in tandem with the splendid performance across the region.

In China, the National Bureau of Statistics reported that the Manufacturing Purchasing Managers’ Index increased to 49.3 in July, improving from 49.0 in June and the market’s estimate of 49.2.

In Japan, investors were still assessing the Bank of Japan’s monetary policy decision to lift the cap on bond yields and the possible adjustment to its ultra-easy monetary policies.

On the domestic front, he was optimistic about the mid-term outlook of the market given the improvement in sentiment and foreign support but investors might be cautious about the increasing market volatility and external uncertainties.

“Based on the current analysis, it is expected that the FBM KLCI will hover slightly higher, oscillating between 1,460 and 1,475 points for the entire week.

“Having broken the 1,460 resistance, we shall see the next resistance level at 1,490, with support at 1,440,” he told BK.

Among the heavyweights, Malayan Banking Bhd, Public Bank Bhd and Tenaga Nasional Bhd increased three sen each to RM9.02, RM4.17 and RM9.60 respectively.

CIMB Group Holdings Bhd added five sen to RM5.55 and Petronas Chemicals Group Bhd went up 10 sen to 6.95.

Of the actives, Top Glove Corp Bhd gained 2.5 sen to 92 sen, KNM Group was half-a-sen firmer at 9.5 sen while Sarawak Consolidated Industries Bhd was flat at 43.5 sen.

Both Hong Seng Consolidated Bhd and UEM Sunrise Bhd fell one sen to 6.5 sen and 48 sen, respectively.