KUALA LUMPUR (April 15): The FBM KLCI closed up 16.13 points or 1.18% at 1,387.79 today while share trade volume across Bursa Malaysia rose past five billion units, as markets took cue from factors including US equities’ Tuesday overnight rise and after the US Department of Justice (DoJ) said it repatriated to Malaysia some US$300 million (RM1.292 billion) in additional funds misappropriated from 1Malaysia Development Bhd (1MDB). 

The International Monetary Fund's (IMF) latest World Economic Report, which included forecast for Malaysia’s gross domestic product (GDP) and unemployment rate, may have also influenced Malaysia share trades today as the fund weighed the economic impact of the Covid-19 pandemic. 

Across Bursa Malaysia today, 5.54 billion shares worth RM2.73 billion were traded. There were 535 gainers and 373 decliners across the exchange. Top gainers included shares of Bursa Malaysia Bhd, Yinson Holdings Bhd and Malaysia Airports Holdings Bhd. 

TA Securities Holdings Bhd wrote in a note today: "Further signs of stability on the Covid-19 outbreak, less dire economic and corporate numbers and recovery in global oil prices will be crucial to sustain further gains from current (KLCI) levels.”

Hong Leong Investment Bank Bhd wrote in note today: "In the wake of overnight strong Dow performance and signs of the coronavirus outbreak peaking in certain hotspots in the world, KLCI could creep higher to retest 1,400 zones before the next meaningful pullback begins. Nevertheless, we reiterate sell into rally as the risk-to-reward perspective is getting more risky amid IMF’s bearish global economic outlook and sluggish oil prices, coupled with the negative impact on Malaysia’s 2020 GDP and corporate earnings due to possibility of further MCO (Movement Control Order) extensions, and a greater degree of relaxation will only happen when new Covid-19 cases sustainably fall below 50 (from the current 150-200 range).” 

The IMF said in the summary of its latest World Economic Report that the Covid-19 pandemic is inflicting high and rising human costs worldwide, and the necessary protection measures are severely impacting economic activity. As a result of the pandemic, the global economy is projected to contract sharply by –3% in 2020, much worse than during the 2008–09 financial crisis, according to the IMF. 

"In a baseline scenario — which assumes that the pandemic fades in the second half of 2020 and containment efforts can be gradually unwound — the global economy is projected to grow by 5.8% in 2021 as economic activity normalises, helped by policy support,” the IMF said.

According to the IMF’s report, Malaysia’s economy is expected to contract 1.7% in 2020 before growing 9% in 2021. The IMF said Malaysia’s unemployment rate is expected to reach 4.9% in 2020 before improving to 3.4% in 2021.

US equities' rise and the DoJ’s 1MDB-linked updates on Tuesday also made news. In the stock market, it was reported that the Dow Jones Industrial Average closed up 558.99 points, or 2.39%, at 23,949.76, the S&P 500 gained 84.43 points, or 3.06%, to 2,846.06 and the Nasdaq Composite added 323.32 points, or 3.95%, to 8,515.74.

Meanwhile, the DoJ announced on Tuesday (April 14) that it repatriated to Malaysia about US$300 million in additional funds misappropriated from 1MDB and laundered through financial institutions in several jurisdictions, including the US, Switzerland, Singapore and Luxembourg.

"Combined with other funds that the department previously returned to Malaysia in May 2019, the US has returned or assisted Malaysia in recovering over US$600 million of funds misappropriated from 1MDB. The department’s efforts to recover funds misappropriated from 1MDB are continuing,” the DoJ said in a statement.