KUALA LUMPUR (Dec 3): The FBM KLCI rallied in tandem with its Asian peers as market sentiment turned positive after the US and China agreed to a temporary trade truce.
The benchmark index closed up 19.86 points or 1.18% at 1,699.72, after briefly rising above the 1,700 mark.
Areca Capital Sdn Bhd chief executive officer Danny Wong expects the KLCI to continue its uptrend towards the end of December, but it is unlikely to be a steep climb.
“The ceasefire (between US and China) could ease some worries in the market, plus there is not much of bad news recently, while US rate hike is coming to its peak,” Wong told the edgemarkets.com.
“We expect the uptrend to continue until end of this year, but we don’t think that market will go up very much. It might be just a rebound, as the selldown before this was overdone,” he said.
Reuters reported that Asian shares rallied today after US and Chinese leaders brokered a truce in their trade conflict, a relief for the global economic outlook and a tonic for emerging markets and battered oil prices.
Japan’s Nikkei rose 1%, Hong Kong Hang Seng Index gained 2.55% while South Korean Kospi was up 1.67%.
On the local front, Bursa Malaysia registered a total trading volume of 2.52 billion shares worth RM2.3 billion. There were 568 gainers versus 338 losers, with 327 counters remaining unchanged.
Top gainers included UMW Holdings Bhd, Axiata Group Bhd and Genting Bhd, while Padini Holdings Bhd was among the notable losers.
Bumi Armada Bhd was the most active counter, with 318.55 million shares traded. It went up 3.5 sen or 22% to 19.5 sen.