Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 20): The FBM KLCI settled up 16.03 points or 0.94% while Bursa Malaysia construction stocks rose by a larger quantum as positive sentiment from China-US trade talks spurred world markets.

At Bursa, the KLCI settled at 1,722.59 at 12:30pm while the bourse's construction index climbed 6.1 points or 3.33% to 189.29. The construction index was the top gainer in percentage terms among Bursa indices.

"(On the KLCI) Stronger follow-through buying momentum will be crucial to extend the index's firm close at a fresh three-month high yesterday, with construction and oil & gas stocks likely to lead rotational trading interest," TA Securities Holdings Bhd wrote in a note today.

Across Asia, Reuters reported today that Asian stocks advanced to 4½-month highs on Wednesday as investors bet that Chinese and US trade negotiators would be able to secure a deal to de-escalate their year-long tariff war. MSCI's broadest index of Asia-Pacific shares outside Japan rose nearly 1% to reach its highest levels since Oct 2.

Across Bursa Malaysia, top gainers included KLCI stocks Genting Bhd and Petronas Dagangan Bhd. Within the construction index, leading gainers included Benalec Holdings Bhd, Sunway Construction Group Bhd and Gamuda Bhd.

At a glance, Malaysian construction stocks could have also taken cue today from news on the potential revival of the East Coast Rail Link (ECRL) project.

Yesterday, Bloomberg, quoting Foreign Minister Datuk Saifuddin Abdullah, reported that Malaysia is making progress in talks with China to revive the rail project that Prime Minister Tun Dr Mahathir Mohamad's government said it would cancel.

It was reported that China is willing to reduce the US$20 billion price tag for the ECRL project and talks are "in the last mile", Saifuddin was quoted as saying in an interview yesterday. He also said discussions have been led by Tun Daim Zainuddin with the aim of reaching a smaller project size and cost.

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