KLCI breaches 1,760 on optimism over upcoming Budget 2018

KLCI breaches 1,760 on optimism over upcoming Budget 2018
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KUALA LUMPUR (Oct 6): The FBM KLCI closed 4.91 points or 0.28% higher as sentiment turns positive ahead of the upcoming budget 2018 later this month, and as foreign selling subsides.

At 5pm, the benchmark index ended at 1,764, above the 1,760 level, showing a return of buying interest.

"Market has rebounded above 1,760 level as sentiment turned positive since the final week of September. Foreign selling has subsided this week as compared to the last week of September," said Loui Low, Hong Leong Investment Bank Bhd's head of retail research.

He said the positivity was also supported by expectations that the upcoming Budget 2018, which is due to be tabled in Parliament on Oct 27, will see more contracts announced for the construction sector.

The recovery of oil and gas is another factor that is supporting the positive turn of events, he said.

Low also said the fourth quarter has historically seen a positive runup for the Malaysian market over the past twenty years.

British American Tobacco (M) Bhd was the top gainer on the local exchange today, climbing 82 sen or 1.92% to close at RM43.52, while Magni-Tech Industries Bhd led the decliners list as it fell 21 sen to RM6.99.

The most active counter was Palette Multimedia Bhd, whose share price surged 7.5% to a close at a new multi-year high of 36 sen, after some 109.5 million shares changed hands.

Across the board, 2.49 billion shares worth RM1.95 billion traded, with gainers leading decliners by 488 to 349.

In Asia, Japan's Nikkei 225 gained 0.3%, while Hong Kong's Hang Seng Index grew 0.28%. Nearer to home, Singapore's Strait Times Index jumped 0.9% with Indonesia's Jakarta Composite edged up 0.06%.

Reuters reported that Japan's Nikkei share average scaled a fresh two-year peak today and posted its fourth straight weekly gain, buoyed by the impact of a weaker currency as well as record highs on Wall Street.