KUALA LUMPUR (Nov 25): The FBM KLCI extended gains on China's interest rate cut and a favourable outlook by the International Monetary Fund (IMF) on Malaysian government financials.
The KLCI rose 4.79 points or 0.26% to close at 1,838.56. Yesterday (Monday, Nov 24), the KLCI rose 24.64 points or 1.36%.
Today, Choo Swee Kee, chief investment officer at TA Investment Management Bhd, said the KLCI's performance was in line with region markets.
“The index is still riding on the regional uptrend, after China announced its move on interest rates,” he told theedgemarkets.com.
He said the KLCI might also be supported by window-dressing activities towards the end of November.
Across Bursa Malaysia, 2.09 billion shares, valued at RM2.46 billion, were exchanged. Decliners beat gainers at 476 against 308, while 305 counters were unchanged.
Leading the gainers was British American Tobacco (M) Bhd, while Dutch Lady Milk Industries Bhd, Petronas Dagangan Bhd and Genting Bhd led decliners.
The most-active stock was Minetech Resources Bhd.
Across the region, Japan’s Nikkei rose 0.29%, South Korea’s Kospi gained 0.08%, while Hong Kong’s Hang Seng contracted 0.21%.
Reuters reported Asian shares gave back some of this week's China-inspired gains on Tuesday, while oil prices slipped as traders lowered their expectations of a significant output cut at this week's Organisation of the Petroleum Exporting Countries meeting.
Malaysian stocks rose for a second straight session on Tuesday, to their highest in nearly three weeks, on the government's decision to abolish fuel subsidies from Dec 1.
Sentiment was also boosted after the IMF said Malaysia was on track to achieve the 2014 federal budget deficit target of 3.5 percent, down from 3.9 percent in 2013. IMF also projected that deficit could decline below 3 percent of GDP in 2015, with fuel subsidy removal.