(This article has been updated.)

KUALA LUMPUR (June 3): The FBM KLCI jumped 30.84 points or 2.05% to 1,538.53 — the highest closing since Feb 14 — on buying interest in battered banking stocks that carry large weightage on the benchmark index. 

The FBM KLCI has been on the climb for six consecutive trading days.

The selling wave that swept across the rubber glove sector did not seem to have dampened the local sentiment as much after a list of stockbrokers tighten margin financing on glove counters. 

The benchmark index marched higher for the sixth straight session today, with buying interest turned towards financial stocks amid their attractive valuations, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

“Gains were also underpinned by the anticipation of The Short Term Economic Recovery Plan for June 2020 to December 2020 that is scheduled to be announced this month. At the same time, the stronger commodity prices (both the crude oil and crude palm oil) and firmer ringgit against the US dollar also provide a boost,” he said.

Trading volume remained high at 9.42 billion shares today, trade value totalled RM7.02 billion. Gainers outnumbered losers by 560 against 445 losers.

Banking stocks, which have been bashed down to at least 10-year low in terms of price-to-book valuation, dominated the gainers list. Public Bank Bhd soared 11.13% or RM1.74 to RM17.38, Malayan Banking Bhd gained 47 sen or 6.26% to RM7.98, RHB Bank Bhd went up 39 sen or 7.86% to RM5.35, and Hong Leong Bank Bhd leapt RM1.02 or 7.3% to RM15.02. 

“Should the FBM KLCI retain its position above the 1,500 level, we see more upsides taking place over the near term,” Leong added.

Across the region, Asian shares advanced as hopes of more stimulus measures and further easing in coronavirus-led curbs around the world offset caution over US-China tensions, Reuters said.

“Analysts said the market has been surprisingly resilient to negative news, both domestic and international, but a sense of short-term overheating capped gains,” the newswire said.

“Meanwhile, the US President Donald Trump has threatened to use the military to quell spreading protests against racism and police brutality, but Wall Street stocks rallied on Tuesday, reflecting the global investor optimism,” it added.

Among the regional bourses, Tokyo’s Nikkei 225 Index rose 1.29% while South Korea’s Kospi advanced 2.87%. Hong Kong’s Hang Seng Index climbed 1.37% and the Shanghai Composite Index gained 0.07%.