Friday 29 Mar 2024
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KUALA LUMPUR (Jan 22): The FBM KLCI gained 15.4 points or 1%, supported by Bank Negara Malaysia's announcement of a lower statutory reserve requirement (SRR) at 3.5%, from 4% for banks here.

Analysts said the SRR cut, effective this Feb 1, would increase liquidity in the market. At 12.30pm today, the KLCI settled at 1,616.32 points.

The KLCI could have also risen on bargain hunting, amid positive regional share market sentiment. Yesterday (Jan 21), the KLCI fell 17.91 points to close at 1,600.92.

Today, analysts said despite the KLCI's rebound, they were still mindful of the impact from slower world economic growth prospects on the Malaysian economy and share market.
 
"Stocks should continue to consolidate with downward bias, as slowdown in global growth and weak commodity prices cause some damage to domestic economic growth," TA Securities Holdings Bhd wrote in a note today.

Bursa Malaysia saw 1.01 billion shares, worth RM698.1 million, traded. Gainers beat decliners at 490 versus 269 respectively.

Banking stocks, Public Bank Bhd and Hong Leong Financial Group Bhd, were among top gainers; while Latitude Tree Holdings Bhd led decliners. The most actively-traded stock was Sanichi Technology Bhd.

Among gainers, Gadang Holdings Bhd shares rose eight sen or 4% to settle at RM2.26, after the construction company said second quarter net profit rose substantially from a year earlier.

Yesterday (Jan 21), Gadang said net profit rose to RM17.72 million in the second quarter ended Nov 30, 2015 (2QFY16), from RM8.51 million. Revenue, however, dropped to RM101.98 million, from RM114.6 million.

At 12:30pm today, Gadang saw 2.5 million shares transacted. The stock pared gains, after rising to its highest so far today at RM2.33.

Across regional stock markets, Japan’s Nikkei 225 rose 3.43%, Hong Kong’s Hang Seng gained 1.41%, while South Korea’s Kospi was up 1.37%.

Reuters reported Asian stocks rose on Friday, after a hint of more monetary easing by the European Central Bank and a bounce in crude oil from 12-year lows, helped soothe skittish markets.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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