KUALA LUMPUR (March 3): The FBM KLCI tracked gains in regional markets today, while investors also turned to equities following another round of interest rate cut announced by Bank Negara Malaysia this afternoon.

The benchmark index rebounded from its intra-day low of 1,466.9 to close up 11.7 points or 0.8% at 1,478.64, led by gains in banking stocks like Public Bank Bhd, Hong Leong Bank Bhd and RHB Bank Bhd.

The gains in banking stocks were despite the overnight policy rate (OPR) cut of another 25 basis points to 2.5%, the second rate cut this year, “to provide a more accommodative monetary environment” amid the Covid-19 outbreak.

“The market has largely expected the rate cut, and considering the prices of banking stocks have been depressed — for multiple reasons — today’s movement is more of a technical rebound,” said HLIB Research analyst Chan Jit Hoong when contacted.

Reuters reported that Southeast Asian stock markets rose sharply today, with Indonesia posting its biggest intraday gain in over four years, as expectations grew that global central banks will ease policies to cushion the economic impact from a fast-spreading coronavirus.

Investors turned to stocks, which are seen as more attractive in a low interest rate environment.

Across Bursa Malaysia, gainers led decliners with 456 against 410 counters, while 396 counters traded unchanged. Some 3.09 billion shares were traded, valued at RM2.49 billion.

Gainers were led by brewery and tobacco stocks on bargain hunting following the steep sell-off last week.

Decliners were led by Batu Kawan Bhd, Aeon Credit Service (M) Bhd and CIMB Group Holdings Bhd.

Elsewhere, Japan’s Nikkei 225 fell 1.22%, China’s SSE Composite Index rose 0.74%, while South Korea’s Kospi rose 0.58%.