KUALA LUMPUR: Bursa Malaysia rebounded to open higher today tracking overnight gains of global indices as the latest data shows retail purchasing in the US remains in positive territory.
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gained 2.09 points to 1,596.68, after adding 1.67 at the opening from yesterday’s close of 1,594.59.
On the broader market, gainers led losers 130 to 63, while 167 counters unchanged, 1,599 untraded and 14 others suspended.
Turnover stood at 81.29 million units worth RM40.46 million.
Malacca Securities Sdn Bhd said, as the global equities continue to make amends, it will be difficult to ignore the positivity with Malaysian equities are already due for a near term rebound.
“While we think the improvements in the global market environment could aid the overdue rebound, the recovery could be measured due to the lack of fresh buying impetuses,“ it said in is equity note today.
It also said that the current market conditions have slightly changed from its cautious state due to the ongoing trade disputes and growing fears of a slowing global economy, to a calmer pace.
“As of now, the 1,600 points level will be the immediate hurdle, followed by the 1,610 level. The 1,590 level is still the near term support, followed by the 1,580 level,“ it said.
Another analyst contended that the market was near-certain on another interest rate cut by the US Federal Reserve after yesterday’s meeting, with many understood that the rate cut is to further boost the economy amidst challenging global environment.
“Markets is expected to take this on the positive note, coupled with better retail purchasing data, which indicates that the market is not going to face a steep fall due to global uncertainty,“ she said to Bernama.
Global indices, Dow Jones Industrial Average gained 0.93% to 26,202.73, Japan Nikkei rose 0.3% to 20,680.15 and Hong Kong Hang Seng jumped 0.15% to 26,270.04.
Banking heavyweight stocks shows a rally today after declining yesterday.
Maybank and Public Bank both rose two sen to RM8.55 and RM20.76 respectively while AMMB and CIMB Group inched one sen to RM3.91 and RM5.08, respectively.
For the most active stocks, Jaks gained 4.5 sen to 86.5 sen, Berjaya Land and Sealink both added half-a-sen to 23 sen and 31.5 sen respectively, while UWC added 5 sen to RM1.41.
The FBM Ace gained 7.03 points to 4,613.19, the FBM 70 increases 2.2 points to 14,157.94, the FBM Emas Index recovered 11.96 points to 11,314.35, the FBM Emas Shariah Index appreciated 10.43 points to 11,844.13 and the FBMT 100 Index was 11.60 points higher to 11,147.68.
Sector-wise, the Financial Services Index strengthened 14.28 points to 15,526.44, the Plantation Index discounted 1.93 points to 6,748.84, and the Industrial Products and Services Index inched up 0.26 of-a-point to 149.90. - Bernama
