Friday 29 Mar 2024
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KUALA LUMPUR (Aug 17): The FBM KLCI rose 2.56 points or 0.1% on positive market sentiment amid ebbing US-North Korea geopolitical tensions and as declining US interest rate hike expectation supported Asian markets.

At 5pm, the KLCI closed at 1,776.31 points after index-linked Hong Leong Financial Group Bhd (HLFG) shares posted sharp gains in the final trading minutes. HLFG rose eight sen to RM17.02.

Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew said
although the KLCI registered modest gains,"the positive local market sentiment showed signs of catching up with regional markets elsewhere in the region".

Across Bursa Malaysia, gainers outstripped decliners at 461 against 315 respectively. A total of 1.8 billion shares worth RM1.88 billion were traded.

Top gainers included Hengyuan Refining Co Bhd and Lotte Chemical Titan Holding Bhd.

Malaysian shares rose ahead of Bank Negara Malaysia's announcement tomorrow on the country's 2017 second quarter gross domestic product (GDP) figures.

In a note, Credit Suisse said its second quarter Malaysia GDP on-year growth estimate at 6% was above consensus estimate at 5.6%.

Today, slower US rate hike expectation boded well for Asian markets in anticipation of demand for higher-yielding regional assets.

Reuters reported that Asian stocks edged higher on Thursday as tensions between the United States and North Korea came off the boil, while the Federal Reserve's concerns about weak US inflation weighed on the dollar.

It was reported that minutes from the Fed's July meeting released on Wednesday showed the central bank grew more wary about recent weak inflation, with some policymakers wanting to halt interest rate hikes until it was clear the trend was temporary. Money market futures are now pricing in about a 40 percent chance the Fed will raise rates by December, compared to just under 50 percent before the Fed's minutes.

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