KLCI posts second day of gains, led by telecom stocks

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KUALA LUMPUR (Nov 8): Malaysian stocks closed higher for second straight day today as foreign investors continued to buy into market.

The benchmark FBM KLCI ended 6.54 points or 0.38% higher at 1,721.42 points, led by telecommunication stocks. The gain also mirror the moves globally after Wall Street's overnight rally. 

According to Inter-Pacific Securities research head Pong Teng Siew, foreign buying helped propped up the local stock market, as well as gains in Maxis Bhd, DiGi.com Bhd and Axiata Group Bhd.

He believes that foreign funds are starting to trickle back into the market as valuations of some bluechips are again turning attractive, adding that the strengthening of the ringgit against the US dollar helped to stabilise sentiments. At the time of writing, the ringgit was trading at 4.1595 to the greenback.

Additionally, Pong said the recovery in oil prices has helped the market. Brent crude futures rose 0.42% to US$72.37 per barrel at the time of writing.

Shares of Maxis closed 11 sen or 2.04% higher at RM5.51 for a market capitalisation of RM43.07 billion, while DiGi closed up six sen or 1.35% at RM4.50, valuing it at RM34.99 billion.

Axiata, on the other hand, closed two sen or 0.56% higher at RM3.62, bringing its market capitalisation of RM32.84 billion.

Trading volume decreased to 2.28 billion shares worth RM2.29 billion compared with yesterday's 2.32 billion shares worth RM2.5 billion. Gainers led losers by 475 to 357, while 361 counters remained unchanged.

Reuters reported that Asian stocks scaled a one-month peak on Thursday, after investors drove a Wall Street rally on relief the US midterm elections delivered no major political surprises, while the dollar bounced and pulled away from two-and-a-half-week low.

Across Asia, Japan's Nikkei 225 grew 1.82%, South Korea's Kospi rose 0.67% while Hong Kong’s Hang Seng was up 0.31%.