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Global vaccination effects pushes equity market to open higher

23 Nov 2020 / 10:35 H.

KUALA LUMPUR: Bursa Malaysia opens higher today in tandem with the positive momentum across developing nations’ equity markets, following the development in the global initiative towards Covid-19 vaccination over the weekend.

As at 9.05am, the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) added 2.99 points to 1,596.74 after opening 0.49 of-a-point lower at 1,583.26.

Gainers led losers 365 to 183, while 349 counters were unchanged, 1,272 untraded and 18 others suspended.

Total volume stood at 772.42 million worth RM246.58 million.

An analyst said that positive developments reported by key vaccine players boosted global equities, especially developing nations stocks, as hopes are high that the end of the Covid-19 pandemic is near.

“After almost a year of the global market gasping for air, investors are positive that markets will recover in the first quarter of next year,“ she said.

According to Bloomberg, developing-nation stocks, currencies and bonds rose for the third consecutive week in the five days through Friday last week, as the prospect of a coronavirus vaccine rollout in the months ahead outweighed concern that rising infections would lead to tougher lockdowns in the nearer term.

Findings from the final stage of AstraZeneca’s (Astra) vaccine studies are due to be released, following the trial successes from Pfizer Inc and Moderna Inc.

The stakes for lower- and middle-income nations are immense as Astra’s vaccine costs a fraction of the price set by Pfizer and will be manufactured in multiple countries, from India to Brazil.

The United States is planning to roll-out Covid-19 vaccinations within the next few weeks and the United Kingdom announced that quarantine restrictions will ease in time for Christmas, while the French government is planning a three-phase easing of lockdown measures starting from December.

Meanwhile, Malacca Securities in its research note today said that the lower liners are likely to trend higher owing to rotational play, while investors will continue to keep an eye on the barrage of corporate earnings releases this week as well as the Budget 2021 voting session in the Parliament this week.

On Bursa Malaysia, heavyweights Public Bank added 34 sen to RM18.64, Top Glove rose nine sen to RM7.38, Hartalega leaped 14 sen to RM14.54 and MISC inched five sen to RM7.05.

Among the actives, Metronic added two sen to 12.5 sen, while NETX, P.A Resources and AT Systematization inched up half-a-sen to 15 sen, 15.5 sen and 19 sen, respectively.

On the index board, the FBM Emas Index was 26.01 points higher at 11,489.98, the FBMT 100 Index improved 22.89 points to 11,489.98, the FBM Emas Shariah Index jumped 26.10 points to 13,251.98, and the FBM 70 surged 36.94 points to 14,771.98.

The FBM ACE climbed 12.21 points to 11,165.74, the Industrial Products and Services Index added 0.64 of-a-point to 160.82, while the Plantation Index trimmed 30.95 points to 7,313.53 and the Financial Services Index slipped 4.40 points to 14,018.92.-Bernama

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