KLCI closes at two-month high after third straight day of gains

KLCI closes at two-month high after third straight day of gains
-A +A

KUALA LUMPUR (Aug 24): The FBM KLCI marched higher for the third straight trading session to close at its two-month high, as investors collected oversold stocks following the recent selldown.

At 5pm, the KLCI climbed 30.94 points or 2.03% to close at its intraday high of 1,553.37 — also its highest since June 25.

Trading volume was at 4.55 billion shares valued at RM3.17 billion, higher compared with 4.21 billion shares worth RM2.14 billion recorded yesterday.

Across Bursa Malaysia, gainers led losers 814 to 314 while 394 counters traded unchanged.

At a glance, 27 of the 30 KLCI-linked counters closed higher, while one was unchanged whereas two were in the red. Sime Darby Plantation Bhd led the pack as the biggest gainer and closed up 6.39% or 25 sen to RM4.16.

This was followed by Public Bank Bhd (rose 4.31% or 17 sen to settle at RM4.11) and Sime Darby Bhd (advanced 4.17% or nine sen to end at RM2.25).

Meanwhile, MR DIY Group (M) Bhd, which closed down 1.81% or seven sen at RM3.80, and Petronas Chemicals Group Bhd, which fell 0.5% or four sen to close at RM7.94, were decliners among Bursa Malaysia's heavyweight counters.

Also, shares in Digi.Com Bhd closed unchanged at RM4.30.

Malacca Securities Sdn Bhd senior research analyst Kenneth Leong told theedgemarkets.com that the local bourse is in a recovery mood following the selldown in the past two months amid the ongoing political noises.

"In light of the new appointment of prime minister, I believe this has contributed to more stable political development, which has helped KLCI climb higher lately," he noted.

"Today, the positive market sentiment was also spurred by the rising commodity prices, including crude oil prices," he added.

The top gainers were Genetec Technology Bhd, Sam Engineering & Equipment (M) Bhd, KESM Industries Bhd, Batu Kawan Bhd, Fraser & Neave Holdings Bhd, Hong Leong Financial Group Bhd, Hong Leong Bank Bhd, Petronas Dagangan Bhd and Ajinomoto (Malaysia) Bhd.

Meanwhile, Tafi Industries Bhd, SKB Shutters Corp Bhd, Warisan TC Holdings Bhd and Yinson Holdings Bhd were among the top losers of the day.

Top active stocks included MMAG Holdings Bhd, Vsolar Group Bhd, Avillion Bhd, Dagang NeXchange Bhd, Focus Dynamics Group Bhd, AE Multi Holdings Bhd, Kanger International Bhd, D'nonce Technology Bhd, Serba Dinamik Holdings Bhd and MY EG Services Bhd.

The upbeat mood was evident in key regional markets. Japan's Nikkei 225 rose 0.87%, South Korea's Kospi added 1.56%. In China, Hong Kong's Hang Seng Index jumped 2.46% and the Shanghai Stock Exchange Composite Index advanced 1.07%.

Reuters reported that a bounce in China's tech sector led Asian stocks higher on Tuesday and markets were also cheered by positive US vaccination news and easing worries about an imminent tapering of stimulus by the Federal Reserve.

It was also reported by Reuters that oil prices rose on Tuesday after the US drug regulator granted full approval to the Pfizer Inc/BioNTech SE Covid-19 vaccine, stoking investor hopes that higher fuel demand would follow a potential rise in US coronavirus vaccination rates.

"Brent crude oil futures gained 21 cents, or 0.3%, to US$68.96 a barrel by 0454 GMT, while US West Texas Intermediate crude futures increased by 14 cents, or 0.2%, to US$65.78 a barrel," the newswire added.

Lam Jian Wyn