KLCI rallies 2.75% on regional optimism as Wall St surge lifts sentiment

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KUALA LUMPUR (March 25): The FBM KLCI rallied 2.75% in early trade Wednesday, riding on the regional optimism following the overnight surge at Wall Street.

At 9.05am, the FBM KLCI rose 36.53 points to 1,327.67.

The gainers were led by Public Bank Bhd, Hong Leong Bank Bhd, Hartalega Holdings Bhd, PPB Group Bhd, Nestle (M) Bhd, Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd, Panasonic Manufacturing Malaysia Bhd, British American Tobacco (M) Bhd and KESM Industries Bhd.

Reuters said Asian shares extended their rally on Wednesday in the wake of Wall Street's big gains as U.S. Congress appeared closer to passing a $2 trillion stimulus package to curb the coronavirus pandemic's economic toll.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3% with Australian shares rising 4.5% and South Korean shares gaining 4.0%. Japan's Nikkei added 2.0%, it said.

JF Apex Securities Research said US markets jumped 10% after the Federal Reserve announced an unlimited quantitative easing program to boost the economy.

It said that earlier, European stocks surged 7.5% after the Fed's pledge and Italy saw fewer coronavirus cases.

“On the local market, the FBM KLCI surged 31.26 points to 1291.14 points.

“Following the bullish sentiment in Wall Street, the FBM KLCI could extend its rebound towards the resistance of 1320 points,” it said.

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