KUALA LUMPUR (March 27): The FBM KLCI rose 1.38% at mid-morning as index-linked constituent stocks mostly firmed up as investors awaited the announcement of the comprehensive stimulus package by Prime Minister Tan Sri Muhyiddin Yassin later in the day.
The strong performance of the local stocks was against the backdrop of firmer regional markets, riding on the positive momentum generated by Wall Street following a US$2 trillion stimulus by the US Federal Reserve (Fed).
At 10am, the FBM KLCI was up 18.56 points to 1,346.65.
Gainers led losers by 568 to 116, while 193 counters traded unchanged. Volume was 980.43 million shares valued at RM437.07 million.
The leading index movers included Sime Darby Bhd, Malaysia Airports Holdings Bhd, CIMB Group Holdings Bhd, Malayan Banking Bhd, Public Bank Bhd and Hong Leong Financial Group Bhd while other gainers included Heineken Malaysia Bhd, LPI Capital Bhd, Genting Plantations Bhd and Petronas Gas Bhd.
The actives included Lambo Group Bhd, Sapura Energy Bhd, Velesto Energy Bhd, AirAsia Group Bhd, Hibiscus Petroleum Bhd and Bumi Armada Bhd.
The top decliners included Malaysia-listed Hang Seng Index-linked put warrants.
Reuters said Asian stocks rose on Friday as investors wagered policymakers will roll out additional stimulus measures to combat the coronavirus pandemic after US unemployment filings surged to a record.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.0%. Australian shares were up 2.02%, while Japan's Nikkei stock index rose 3.65%, it said.
Hong Leong IB Research said given the positive trading tone from Wall Street after striking a deal of US$2 trillion stimulus, coupled with the Fed stepping in to boost the economy by announcing unprecedented QE program and slashing interest rates near to zero, buying support would spill over to stocks on the local front, lifting FBM KLCI for another upward move today.
“At this juncture, downside risk is lowered with Bursa and SC suspending the short selling activities as well as Bursa [relaxing] margin financing rules to ease force selling pressure on the market.
“The KLCI’s trading range will be located around 1,270-1,370 at this moment. Also, market participants will be awaiting more details for a comprehensive stimulus package today,” it said.
Meanwhile, S&P Global ratings has affirmed Malaysia 'A-/A-2' Foreign Currency and 'A/A-1' Local Currency Ratings with stable outlook.
In a statement today, the ratings agency said it expects that Malaysia's core credit strengths, including its robust external position and highly credible monetary policy settings, will continue to support the rating following the recent aggressive decline in oil prices and unexpected change in government.