FBM KLCI extends gain as China shares lift Asian stocks

FBM KLCI extends gain as China shares lift Asian stocks
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KUALA LUMPUR (July 24): The FBM KLCI gained 4.97 points or 0.28% amid positive investment sentiment across Bursa Malaysia technology, construction and property shares. At a glance, the FBM KLCI's rise also mirrored gains in China stock markets.

At Bursa Malaysia, the KLCI closed at 1,762.93 points at 5pm. Bursa Malaysia's technology, construction and property indices gained 1.68%, 1.08% and 1.5% respectively.

"Given the renewed buying momentum (in the KLCI) following yesterday's rise, there may be more upside with profit-taking well-absorbed by fresh bargain hunting interest, specifically on construction-related stocks," TA Securities Holdings Bhd wrote in a note today.

Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com: “I think we’re in a trading position right now. It’s not for long-term holdings and I think the recovery should be for the short term.”

The KLCI extended gains after increasing 3.29 points yesterday on what appeared to be a reaction to news that the Malaysian Investment Development Authority had a total of 402 projects with proposed investment of RM75 billion as at May 2018.

Across Bursa Malaysia today, 3.35 billion shares worth RM2.69 billion were traded. Notable among top gainers and most-active stocks was newly-listed Radiant Globaltech Bhd. Radiant shares rose 30 sen to close at 53 sen with some 180 million units traded.

Malaysian and Asian shares took cue from China stock markets. In China, the Shanghai Stock Exchange Composite rose 1.61% while Hong Kong's Hang Seng added 1.44%.

Japan's Nikkei 225 was up 0.51% while South Korea’s Kospi climbed 0.48%.

Reuters reported that Shanghai shares led Asia higher on Tuesday as China touted fiscal action to support the world's second largest economy, while stellar results from internet giant Alphabet underpinned the tech sector generally.

It was reported that global bonds remained under pressure on speculation the Bank of Japan may soon trim its massive stimulus. In China, government bond yields jumped and the offshore yuan hit a one-year low after China's Cabinet said it would pursue a more vigorous fiscal policy and as traders bet on further easing in monetary conditions.