KUALA LUMPUR (Nov 6): The FBM KLCI closed 18.15 points or 1.21% higher, making it the third consecutive day of gains, as investors evaluate Malaysia's Budget 2021 announcement while awaiting the results of the US Presidential election.

At 5pm, the local benchmark index closed at an intraday high of 1,519.64 points — a three-week high.

Despite opening lower today, the FBM KLCI managed to quickly rebound strongly and was traded in the positive territory for most of the trading day.

Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com that investors are buying and looking ahead to what is expected in the Budget 2021 this afternoon, adding that everyone is looking for recovery play next year. Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz is currently tabling Budget 2021 in Parliament.

In a note today, TA Securities Holdings Bhd wrote that the immediate index upside hurdles are revised higher to the 50-day and 100-day moving averages at 1,508 and 1,534 respectively, with the subsequent hurdle from the upper Bollinger band at 1,541.

Immediate support now, on the other hand, is reset to the 200-day moving average at 1,490, followed by the rising 10-day moving average at 1,484.

The research firm also noted that democrat candidate Joe Biden looks increasingly certain to win the US presidential election, which in turn, improves economic recovery hopes amid lessening global trade tensions.

Today, Bursa Malaysia saw 7.67 billion shares worth RM4.67 billion traded. Gainers outpaced laggards at 624 versus 469, while 436 counters remained unchanged.

Among the 30 constituents, more than two-thirds were making positive gains. Axiata Group Bhd led the pack as the biggest winner and was 4.92% or 15 sen higher to close at RM3.20.

This was followed by Hap Seng Consolidated Bhd that was up 4.61% or 35 sen at RM7.95 and PPB Group Bhd that grew 3.24% or 60 sen to close at RM19.10.

Across Asia, Japan’s Nikkei 225 increased 0.91%, South Korea's Kospi rose 0.11% while Hong Kong’s Hang Seng was up 0.07%.

Reuters reported global stocks eyed an all-time peak while the dollar and US bond yields stayed sluggish on Friday on hopes that a divided US legislature would hinder large government borrowing, which could pave the way for even more central bank stimulus.

Meanwhile, investors expect Democrat Joe Biden to beat President Donald Trump and the Republicans to retain control of the Senate, allowing them to block Democrat policies such as corporate tax hikes and debt-funded spending on infrastructure, said Reuters.

“With the prospects of fiscal stimulus constrained by a likely gridlock in Washington, monetary policy will likely have to do heavy lifting, boosting risk assets and putting pressure on the dollar,” said Hiroshi Watanabe, economist at Sony Financial Holdings was reported saying.

The newswire wrote that a sense that a Biden presidency will be more predictable than Trump’s is also underpinning risk sentiment, even though investors saw no quick rapprochement between Washington and Beijing on trade and other issues.