FBM KLCI edges higher with Sapura Energy, Serba Dinamik top trades

by AUFA MARDHIAH

THE benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gave up early gains to close the mid-day trade up 6.53 points to 1550.94 points as other Asian markets also posted gains despite fears the global economic recovery remains at risk to inflationary pressures that could trigger stagflation or even a potential recession.

The FBM KLCI hit a high of 1558.11 point in early trading before selling pressure saw the index hit a low of 1548 point in late midday trade. 

Investors’ interest in the local equity market was supported by Bank Negara Malaysia’s statement the local economy was on a strong sustainable recovery path despite risk to growth. 

The central banks announced the local economy grew by 5% in the first quarter of 2022.

Traders expect financial markets to remain volatile as investors digest market developments and data. A Bank of America analyst recently interpreted the current market situation as “inflation shock is worsening, rate shock is just beginning and recession shock is coming”. 

The local market benchmark was lifted by counters like Nestle (M) Bhd which was up RM2.30 to RM133.80 and Hong Leong Financial Group Bhd that was up 42 sen to RM19.30. 

Volume on the local market hit a high of three billion securities valued at RM1.25 billion as investors interest was in speculative penny stocks like Sapura Energy Bhd and Serba Dinamik Holdings Bhd   

Both counters were actively traded with cash strapped Sapura Energy rising 3.5 sen or 77.78% to 8 sen a share with some 692.76 million shares traded while Serba Dinamik was up 7 sen or 8.3% to 19 sen a share with some 492.16 million shares traded. 

Including the trading of their warrants, the two counters accounted for 46.4% of total trade on the local exchange at midday.