KLCI jumps 25pts/1.36% to intraday high on China rate cut

-A +A

KUALA LUMPUR (Nov 24): The FBM KLCI jumped 24.64 points or 1.36% to its intraday at 1,833.77, after China interest rate cut whetted global investor sentiment.
Analysts said the KLCI's rise was in line with gains in regional markets, as China had cut interest rates for the first time in more than two years to support its economy.

“The KLCI rose today, mostly on China cutting its interest rates. For the rest of the week, the performance of the index may be affected by the outcome of the OPEC (Organisation of the Petroleum Exporting Countries) meeting on oil prices on Thursday,” JF Apex Securities analyst Lee Cherng Wee told theedgemarkets.com over telephone.

Lee said ongoing negotiations between Iran and the US on the scale-down of the former’s nuclear programme, might also pose a potential risk to the KLCI.

On whether local or foreign funds were supporting the KLCI, Lee said it was “hard to tell”.

But he mentioned that blue-chip stocks dominated market activity today. The KLCI had risen on gains in stocks like Tenaga Nasional Bhd and Kuala Lumpur Kepong Bhd.

Bursa Malaysia saw 2.24 billion shares, worth RM1.92 billion, traded today. Gainers beat decliners at 510 versus 297, while 290 counters were unchanged.

The top gainer was British American Tobacco (M) Bhd, while United Plantations Bhd was the top decliner. Minetech Resources Bhd was the stock with the highest number of trades.

Across the region, China’s CSI 300 gained 2.55%, Hong Kong’s Hang Seng rose 1.95%, while South Korea’s Kospi increased 0.7%.

Reuters reported Asian markets rallied on Monday, with shares in Shanghai hitting three-year highs as the prospect of further policy stimulus in China and Europe whetted risk appetites globally, while sending the euro skidding.

Tokyo's market was closed for a holiday on Monday, but MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.2 percent — its biggest daily gain in a month.