Thursday 28 Mar 2024
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KUALA LUMPUR (July 25): The FBM KLCI rose 10.84 points or 0.7% as investors bargain hunted for beaten-down shares while emerging Asian markets benefited from funds flowing out of Europe where bond yields were in negative territory.

At 5pm, the KLCI closed at 1,668.26 points as investors bought beaten-down stocks like PPB Group Bhd and IHH Healthcare Bhd. PPB and IHH were Bursa Malaysia's third and 10th-largest gainers respectively.

PPB shares rose 22 sen to RM16.06 after falling last week following a profit warning by its 18.55%-owned Singapore-listed unit Wilmar International Ltd.

Today, shares of IHH, which has operations in Turkey, climbed 12 sen to RM6.60 after declining last week when Turkey declared a state of emergency. The three-month state of emergency followed a coup attempt there.

In Malaysia today, analysts said the US and emerging markets like Malaysia could have benefited from funds flowing out of Europe.

Reuters reported that as European and Japanese bond yields have plunged deeper into negative territory, investors are rushing to US assets, where bond yields are higher and the economic prospects look better.

In Malaysia, Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com that the KLCI rose as funds flowed out of Europe to seek higher yields.

"Generally, funds are flowing out of Europe and headed for the US and emerging markets. That's why you see the US market up continuously," Pong said.

Across Bursa Malaysia, gainers led decliners by 415 to 364. Volume was 1.6 billion shares valued at RM1.58 billion.

Top decliner was Ajiya Bhd while most active was TH Heavy Engineering Bhd.

Among gainers, Wah Seong Corp Bhd shares rose one sen to 75.5 sen after the company bagged a US$18.23 million (RM73.87 million) pipe-shipping contract from Statoil Petroleum AS Norway.

 

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