KLCI rises 0.57% in line with global stocks as renewed optimism lifts sentiment

KLCI rises 0.57% in line with global stocks as renewed optimism lifts sentiment
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KUALA LUMPUR (Jan 21): The main index at Bursa Malaysia rose 0.57% in early trade on Thursday in line with regional markets as renewed optimism over US fiscal spending lifted global investor sentiment.

At 9.10am, the FBM KLCI rose 9.19 points to 1,610.73.

The early gainers included JF Technology Bhd, Carlsberg Brewery Malaysia Bhd, Public Bank Bhd. ViTrox Corp Bhd, Fraser & Neave Holdings Bhd (F&N), UWC Bhd, EITA Resources Bhd and Malaysian Pacific Industries Bhd.

Bloomberg said global stocks climbed to fresh all-time highs on Thursday on optimism that fiscal spending will revive growth and bolster corporate earnings.

The dollar weakened, it said.

Rakuten Trade said strong corporate earnings plus a new US president had given new hopes to traders as Wall Street closed at another record high.

The research house said the Dow Jones Industrial Average climbed almost 260 points to end near 31,200 level with both S&P and Nasdaq all ended on record highs.

“We expect regional markets to trend higher today as investors expect Biden to improve US ties with China.

“Domestically, the FBM KLCI slumped as Bank Negara maintained the OPR (overnight policy rate).

“The index succumbed to late selling again to close just above the 1,600 mark but we expect it to rebound today with 1,615 as the immediate resistance.

“News that Genting Bhd will shut down its resort operations again may see some share price weakness and we are buyers if Genting Malaysia Bhd dips below the RM2.20 level,” it said.