KUALA LUMPUR (May 14): The FBM KLCI erased its earlier losses and rose 0.43% at midday break today, as the initial post election kneejerk reaction eased and investor sentiment perked up.
At 12.30pm, the FBM KLCI was up 8.01 points to 1,854.52. The index had earlier slumped to its intra-morning low of 1,797.14.
Gainers led losers by 608 to 222, while 575 counters traded unchanged. Volume was 4.27 billion shares, valued at RM4.13 billion.
The top gainers included British American Tobacco (M) Bhd, Nestle (M) Bhd, Petron Malaysia Refining & Marketing Bhd, Heineken Malaysia Bhd, Hengyuan Refining Company Bhd, KESM Industries Bhd, PPB Group Bhd, Public Bank Bhd and Hong Leong Bank Bhd.
Actives included Sapura Energy Bhd, Eden Inc Bhd, Sumatec Resources Bhd, Berjaya Corp Bhd, UMW Oil & Gas Corp Bhd, Felda Global Ventures Holdings Bhd, CIMB Group Holdings Bhd and Malaysian Resources Corp Bhd.
Losers included George Kent (M) Bhd, Gamuda Bhd, My E.G. Services Bhd, Lingkaran Trans Kota Holdings Bhd, Cahya Mata Sarawak Bhd, Prestariang Bhd, Gabungan AQRS Bhd, CIMB and Tenaga Nasional Bhd.
Asian shares shot up to near two-month highs on Monday, on signs the United States and China were toning down their trade war rhetoric, while the Malaysian ringgit hit a four-month trough in the first onshore trade since a shock election result last week, according to Reuters.
Veteran Mahathir Mohamad came out of political retirement to lead the opposition Pakatan Harapan (Alliance of Hope) to a stunning victory over a ruling party he had once led, defeating prime minister Najib Razak, a former protege he had accused of corruption, Reuters said.
Affin Hwang Capital Research said winds of change blowing through the West Coast of Peninsula and Sabah on May 9 had certainly taken Malaysians to the magic of the moment, whereby Pakatan Harapan took over Barisan Nasional as the new ruling government.
“The FBM KLCI Index anticipated to fluctuate in a wider price range, with escalating downward bias,” the research house said.