KUALA LUMPUR (May 31): The FBM KLCI rose 21.34 points or 1.24% on bargain hunting as share trade value across Bursa Malaysia topped RM9 billion for a record high.
Bargain hunting emerged after the KLCI's substantial fall yesterday. Today, Malaysian shares also rose with Asian equities as Italy's political concerns ebbed and after China announced growth in its manufacturing sector.
At Bursa Malaysia today, the KLCI closed at 1,740.62 points after trading between 1,725.16 and 1,754.44 points. Yesterday, the KLCI fell 56.56 points to 1,719.28 points.
Today, JF Apex Securities Bhd head of research Lee Chung Cheng told theedgemarkets.com that bargain hunting activities emerged in the Malaysian stock market after concerns on Italy's political uncertainties eased.
“KLCI's performance was also quite in line with its regional peers today, but market is still very choppy at the moment. Externally, we have the Italian (political) concern and the US-China trade negotiation.
"Domestically, we have policy uncertainties from the new government,” he said.
Across Bursa Malaysia, trading volume was 4.61 billion shares worth RM9.27 billion. Yesterday, trading volume was 3.6 billion shares valued at RM4.46 billion.
Asian shares rose as Italy's political concerns ebbed and after China said today its purchasing managers' index (PMI) climbed to 51.9 in May,from 51.4 in April. A PMI reading above 50 indicates growth.
In China, Hong Kong’s Hang Seng gained 1.37% while the Shanghai Stock Exchange Composite added 1.78%. Elsewhere, Japan’s Nikkei 225 rose 0.83% while South Korea's Kospi was up 0.58%.
Reuters reported that Asian stocks rebounded from a two-month trough on Thursday, while the euro enjoyed a respite after sinking to its lowest in 10 months as political turmoil in Italy that had roiled global financial markets showed signs of easing.