KLCI settles up 2.04% as investors cheer Covid-19 vaccine news

KLCI settles up 2.04% as investors cheer Covid-19 vaccine news
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KUALA LUMPUR (Nov 10): The FBM KLCI settled up 31.02 points or 2.04% at 1,555.34 before Bursa Malaysia’s afternoon break today as global investors cheered news of positive data from the Pfizer-BioNTech Covid-19 vaccine trial, which spurred confidence in a global economic recovery.

Across Bursa at 12.30pm, 7.77 billion securities had been traded for RM4.9 billion.

Globally, it was reported that Asian share markets mostly shot higher today, driven by regional airline, tourism and travel stocks, as global investors applauded progress in the development of a coronavirus vaccine which lifted confidence in a world economic recovery.

Pfizer Inc reportedly said its Covid-19 vaccine, developed with its German partner BioNTech SE, was more than 90% effective in preventing Covid-19 infection, marking the first successful results of a large-scale clinical trial.

"Markets will remain on the lookout for more promising vaccine data in addition to news of a fiscal reboot," PineBridge Investments portfolio manager Mary Nicola was quoted as telling Reuters.

Meanwhile, Bernama, quoting dealers, reported that Bursa Malaysia extended its rally to midday, with the key index rising by 2.04%, thanks to persistent buying momentum in banking-related stocks amid positive regional sentiment.

It was reported that Public Bank Bhd soared RM1.68 to RM16.98, Malayan Banking Bhd (Maybank) rose 42 sen to RM7.54, Hong Leong Bank Bhd increased RM1.14 to RM15.84, CIMB Group Holdings Bhd advanced 23 sen to RM3.29 and RHB Bank Bhd bagged 35 sen to RM4.73.

It was reported that gains in these banking stocks saw the Financial Services Index surge 817.05 points to 13,084.32, and contributed a substantial 36.61 points to the rise in the composite index.

"A dealer said banking counters were on the rise as the blanket moratorium was not extended under Budget 2021, which bodes well for banks’ earnings,” Bernama reported.