FBM KLCI, small caps higher amid China stimulus hope

FBM KLCI, small caps higher amid China stimulus hope
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KUALA LUMPUR (July 25): The FBM KLCI rose 0.85 point while Bursa Malaysia small cap stocks climbed by a larger quantum as Asian equities took cue from anticipation that China's fiscal policy will support growth. Overnight US share gains also supported Asian stocks' rise today.
At Bursa Malaysia, the KLCI closed at 1,763.78 points at 5pm. Bursa Malaysia's small cap index climbed 107.24 points or 0.72% to 14,984.35 while the construction index rose 2.46 points or 1.09% to 228.84.    

Across Asia, Japan’s Nikkei 225 was up 0.46% while Hong Kong’s Hang Seng rose 0.9%.

Reuters reported that Asian stocks rose modestly on Wednesday, supported by upbeat Wall Street earnings and hopes China's government spending would boost growth but trade tensions remained in focus ahead of a meeting between the US and European Commission presidents.

Across Bursa Malaysia, 3.75 billion shares worth RM2.7 billion were traded. Sapura Energy Bhd was the most-active counter with some 341 million shares traded. Sapura Energy rose 3.5 sen to 62 sen.

Bursa Malaysia's construction index's 1.09% rise was the second highest among the bourse's indices. Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com that Malaysian stocks, particularly construction shares, have been supported by news on Council of Eminent Persons chairman Tun Daim Zainuddin's China visit to renegotiate loans and contracts that Malaysia had earlier entered into with Chinese firms.

Lau said “the latest development has helped to create some positive newsflow for the construction players" in Malaysia.