KUALA LUMPUR (July 1): The FBM KLCI rose 1.6% in mid-morning trade, after Fitch Ratings upgraded Malaysia's debt outlook.

Fitch said it had maintained its 'A' and 'A-' ratings for Malaysian government debt and upgraded its outlook for the country's long-term issuer default ratings to stable, from negative. Fitch said it had taken into account, the nation's improving financials and economic growth.

At 10.20am, the KLCI rose to 1,734.12 points. At 10.43am, the index climbed 28 points to 1,734.64.

The index had extended gains after rising 14.72 points or 0.9% yesterday, to finish at 1,706.64.

Today, Bursa Malaysia saw 513 gainers versus 102 decliners, while 186 counters were unchanged.
Some 726 million shares, worth RM464.99 million, changed hands.

Top gainers included British America Tobacco (M) Bhd and Kuala Lumpur Kepong Bhd. The leading decliner was Shell Refining Co (Federation of Malaya) Bhd.

The most actively-traded stock was VSolar Group Bhd.

Analysts are optimistic on Malaysian shares, following the Fitch upgrade. BIMB Securities Sdn Bhd wrote in a note today that the KLCI could see further gains today.
 
"We may see more upside on the local bourse today," BIMB said.