Thursday 28 Mar 2024
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KUALA LUMPUR (June 22): The FBM KLCI ended 0.11% higher today, tracking regional markets on the back of the overnight rally on Wall Street.

The benchmark index closed 1.78 points higher at 1574.02, after rising to a high of 1,577.57.

Inter-Pacific Securities head of research Victor Wan said the KLCI's rebound was in tandem with the rally on Wall Street.

“However, the recovery strength is not quite there yet, as there are not enough catalysts to lift the market,” he told theedgemarkets.com.

He added that the level of market participation has been low lately, as many investors are not looking at the market at this point.

Other than the local political uncertainty, the market's concern is that the second-half economic growth is not going to meet  expectations because of the full movement control order (FMCO), Wan said, adding that corporate earnings are expected to underperform too.

“Investors are waiting for more concrete evidence that could drive a sustainable rebound,” he said, and expects the market to trade range-bound in the next few days.

While the Wall Street rally has provided a fillip to local bourse, Hong Leong Investment Bank Research analyst Ng Jun Sheng also said in a note today that any rebound is likely to be capped near the 1,590 to 1,610 zones.

This is because investors are still grappling with a hawkish US Federal Reserve (Fed), unabated Covid-19 cases nationwide, the impact of the FMCO extension to the economy and corporate earnings, and domestic fluid politics, he said.

Across Bursa Malaysia, 5.9 billion securities were traded for RM3.08 billion today, compared with 6.04 billion securities worth RM2.8 billion yesterday.

Gainers led losers by 528 to 481, while 468 counters closed unchanged.

Genetec Technology Bhd was the top gainer, rising 33 sen or 6.25% to RM5.61. This was followed by newly-listed OM Holdings that rose 26 sen or 10.12% to RM2.83.

Malaysian Pacific Industries Bhd was the top loser, falling RM1.42 or 3.56% to RM38.52. This was followed by Kuala Lumpur Kepong Bhd, which lost 66 sen or 3.07% to RM20.84.

Serba Dinamik Holdings was the most actively-traded stock with 576.23 million shares exchanging hands. It rebounded 2.5 sen or 4.17% to 62.5 sen.

Reuters reported global shares extended their recovery as investors focused on prospects for post-pandemic economic growth, rather than fret more over the hawkish stance taken by the Fed at a policy meeting last week.

The Nikkei share average jumped 3.12% to 28,884.13 in its biggest percentage gain since June last year. South Korea’s Kospi closed up 23.09 points or 0.71% at 3,263.88 and the Shanghai Composite Index rose 28.23 points or 0.8% higher to 3557.41.

Edited ByS Kanagaraju
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