KUALA LUMPUR (Dec 10): The FBM KLCI rebounded to finish 27.42 points or 1.58% at its intraday high as investors bargain hunted for beaten down stocks.
The KLCI settled at 1,765.52 points at 5pm on gains in plantation shares like PPB Group Bhd and Sime Darby Bhd.
Reuters reported that Malaysian palm oil futures rose on Wednesday, rebounding from near one-week lows hit in the previous session, as data showing a rise in palm oil exports in early December helped reinforce some optimism about the outlook for demand.
The KLCI's gain today followed a 2.74 point or 0.16% fall yesterday. The KLCI had closed at current level from a six-month high of 1,892.65 sen seen on July 8 this year.
Today, a remisier told theedgemarkets.com the KLCI's gain was attributable to renewed buying interest.
“In the last two weeks or so, the KLCI had fallen by over a hundred points from 1,842 points at the end of November to a low of around 1,760 points.
“Today, the market moved more positively because investors are starting to bargain hunt for stocks which have been battered recently by the selldown,” he said.
Across Bursa Malaysia, 1.6 billion shares valued at RM1.24 billion changed hands.
Gainers outnumbered decliners by 502 to 281 with 301 counters traded unchanged.
Top gainers included Petronas Gas Bhd and PPB. Leading decliners included Nestle (M) Bhd and LPI Capital Bhd.
The most actively traded stock was SapuraKencana Petroleum Bhd.
The remisier said a strengthening ringgit versus the US dollar in morning helped pushed the market higher.
The ringgit was traded at 3.4808 against the US dollar at the time of writing after having weakened to above the 3.5000 level yesterday.
Today, the remisier said: “Whether the KLCI’s upward movement can be sustained for the rest of the week will depend on the performance of oil prices and whether the ringgit will continue to strengthen.
"If the ringgit performs better, we will be looking at potential upside,” he said.