KLCI rises 0.53%, comes out of torpor with global equity rally

KLCI rises 0.53%, comes out of torpor with global equity rally
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KUALA LUMPUR (Nov 25): The main index of Bursa Malaysia came out its state of torpor and rose 0.53% in the mid-morning today, tracking the global market rally after fresh overnight records on Wall Street.

At 10am, the FBM KLCI had risen 8.45 points to 1,586.84.

Market breadth was positive with 533 gainers and 290 losers, while 407 counters traded unchanged. Trading volume was 2.56 billion shares valued at RM921.36 million.

The gainers included Nestle (Malaysia) Bhd, GETS Global Bhd, Carlsberg Brewery Malaysia Bhd, Public Bank Bhd, ViTrox Corp Bhd, Malaysian Pacific Industries Bhd, Heineken Malaysia Bhd, Sarawak Consolidated Industries Bhd and Petra Energy Bhd.

The actively traded stocks included AT Systematization Bhd, Sapura Energy Bhd, KNM Group Bhd, Bumi Armada Bhd, Hibiscus Petroleum Bhd and Alam Maritim Resources Bhd.

The decliners included Petronas Dagangan Bhd, Pintaras Jaya Bhd, Batu Kawan Bhd, Top Glove Corp Bhd, TIME dotCom Bhd, Khind Holdings Bhd and IHH Healthcare Bhd.

Reuters said Asian stocks made early gains today, following a world rally overnight that saw the Dow Jones Industrial Average crack 30,000 for the first time as investors cheered a dramatically improved global outlook.

The main drivers of that exuberance were increasing confidence a Covid-19 vaccine would be ready soon and the formal start of US president-elect Joe Biden's transition to the White House, ending weeks of post-election political uncertainty, it said.

Rakuten Trade said Wall Street surged due to the good news, namely the political climate in the US and more positive vaccine developments.

It said that as a result, the Dow Jones jumped a massive 455 points to finally shatter the psychological 30,000 mark.

“With this, we reckon regional markets to see positive movements today after a mixed session yesterday.

“Locally, we believe the KLCI will reverse [its downtrend] following a rather dismal performance yesterday.

“Talk of no new taxes for now could spur trading today, therefore the local bourse may see broad-based buying with the benchmark index to retest the 1,590 [level] and towards the 1,600 mark. However, waning interest in rubber glove companies may prove to be the main road bump ahead.

“Meanwhile, the positive vaccine outlook saw the Brent crude inching towards to US$50 (RM204.42)/barrel as it closed around US$48/barrel yesterday,” it said.