KUALA LUMPUR (Nov 9): The main index of Bursa Malaysia pared some of its gains in the mid-morning but was firmly above the 1,500-point threshold, tracking regional markets that surged after Joe Biden won the US presidential race.

At 10am, the FBM KLCI was up 4.29 points at 1,523.92. The index earlier rose to a high of 1,533.05.

Gainers led losers by 559 to 348, while 365 counters traded unchanged. Trading volume was 3.45 billion shares valued at RM1.26 billion.

The gainers included Dutch Lady Milk Industries Bhd, British American Tobacco (Malaysia) Bhd, Hartalega Holdings Bhd, Fraser & Neave Holdings Bhd (F&N), ViTrox Corp Bhd, Kumpulan Powernet Bhd, Latitude Tree Holdings Bhd and Chin Teck Plantations Bhd.

The actively traded stocks included AT Systematization Bhd, Pegasus Heights Bhd, Lambo Group Bhd, Sapura Energy Bhd, Kanger International Bhd, Priceworth International Bhd, XOX Bhd and NetX Holdings Bhd.

The decliners included Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Kuala Lumpur Kepong Bhd (KLK), TIME dotCom Bhd, PPB Group Bhd and UMW Holdings Bhd.

Reuters said shares surged, oil prices jumped and the US dollar stayed weak today as expectations of fewer regulatory changes and more monetary stimulus under US president-elect Joe Biden supported risk appetite.

The Democratic candidate's victory in the US presidential election was largely priced in by markets, which had been trading with the view of a Biden presidency and Republican-controlled US Senate since last week, it said.

Inter-Pacific Research Sdn Bhd in its daily bulletin said Malaysian equities continued to rally last Friday with much of the upside helped by buoyant global equity markets as well as the unveiling of the biggest-ever budget spending by the Malaysian government to tackle effects of the Covid-19 pandemic.

It said gains of the key index were also much stronger than expected as it closed in on the 1,520 level, helped by the return of foreign institutional funds that picked up selected index heavyweights.

The research house said trading volume rose but market condition was mixed even as gainers were still ahead of losing stocks.

“Despite chalking up stronger-than-expected gains last week, the FBM KLCI’s near-term outlook remains sanguine, helped by improved market sentiments as global equity markets are seen calmer and cheering the election win of a new US president,” it said.

Inter-Pacific said this could help the key index to swing past the 1,520 level with market players also casting aside lingering Covid-19 concerns.

“There should also be increased thematic plays of some of perceived beneficiaries of the recently-announced Budget 2021, with selected telco, construction, healthcare and consumer stocks to gain further ground, in our view.

“With the key index set to past the 1,520 level, the next obvious targets are the 1,525 and 1,530 levels respectively, while the support [levels] are at 1,513 and the psychological 1,500 points respectively,” it said.