Bursa Malaysia hits 3-month high as sentiment improves

The FBM KLCI is in an uptrend with indications of a strong technical rebound, according to an expert


The local stock market closed at a fresh high of 1,804 points yesterday under the period of the Pakatan Harapan government, the highest in 11 weeks and about 140 points higher than its 12-month low, as investor sentiment improved.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.6 points, or 0.76%, as investors bought heavyweight counters like Axiata Group Bhd, Genting Malaysia Bhd and Dialog Group Bhd.

Market breadth was positive with 590 gainers compared to 322 losers.

“The FBM KLCI is in an uptrend with technical indicators indicating a strong technical rebound of the key index as sentiment of the broader market turned moderately bullish,” a chartist with a local brokerage said.

He added that in order for the FBM KLCI to turn bullish for the long term, the key index will have to break past and stay above the 1,808-point level.

The local benchmark has also recovered 140.87 points, or 8.47%, from its one-year lowest close of 1,663.86 points on July 6, 2018.

Actively traded stocks during the trading day include Malaysian Resources Corp Bhd, Vivocom International Holdings Bhd, Sapura Energy Bhd, MyEG Services Bhd, Iris Corp Bhd, Frontken Corp Bhd, Borneo Oil Bhd, Cuscapi Bhd, Nexgram Holdings Bhd and MMAG Holdings Bhd.

The trading volume increased to 2.77 billion shares worth RM2.71 billion compared to Tuesday’s 2.5 billion shares worth RM2.3 billion.

Leading movers included Axiata, which rose 21 sen to RM4.55, while Genting Malaysia increased 17 sen to RM5.30, Dialog rose 11 sen to RM3.46, Hartalega Holdings Bhd advanced 17 sen to RM6.34 and Press Metal Aluminium Holdings Bhd gained 10 sen to RM4.99.

Lagging movers were Telekom Malaysia Bhd, which was down three sen to RM3.74, while Sime Darby Plantation Bhd dipped three sen to RM5.31, RHB Bank Bhd fell three sen to RM5.45, IOI Corp Bhd down one sen to RM4.69 and KLCCP Stapled Group lost one sen to RM7.79.

Top gainers during the session were Far East Holdings Bhd which increased RM1 to RM14.20, while United Plantations Bhd rose 38 sen to RM27.78.

Hengyuan Refining Co Bhd was up 35 sen to RM7.66 on increased volumes, while Hong Leong Indus- tries Bhd rose 32 sen to RM11.58 and ViTrox Corp Bhd increased 31 sen to RM6.80.

Top losers in the day included British American Tobacco (M) Bhd which fell 18 sen to RM34.18, followed by Ibraco Bhd which decreased 17 sen to 35 sen and Kluang Rubber Co (Malaya) Bhd dipped 15 sen to RM4.05.

The rise in the local market was via the financial stocks with the Finance Index increasing 0.37% to 17,570.54 points, while the Properties Index rose 1.65% to 1,091.6 points and the Plantation Index rose 0.02% to 7,711 points.