KLCI rises 0.76% on sustained momentum to stay firmly rooted above 1,400-level

-A +A

KUALA LUMPUR (April 20): The FBM KLCI sustained its momentum and rose 0.76% in early trade Monday to stay firmly rooted above the 1,400-point level, despite the cautious regional markets, as gains at index-linked heavyweights lifted the local bellwether.   

At 9.05am, the FBM KLCI rose 10.74 points to 1,418.08.

The early gainers included Carlsberg Brewery Malaysia Bhd, British American Tobacco (M) Bhd, Nestle (M) Bhd, Aeon Credit Service (M) Bhd, Malaysia Airports Holdings Bhd, Petronas Dagangan Bhd, Genting Bhd, Hong Leong Bank Bhd, Public Bank Bhd and Petronas Chemicals Group Bhd.

Reuters said caution gripped Asian share markets on Monday on expectations a busy week of corporate earnings reports and economic data will drive home the damage done by the global virus lockdown, while U.S. crude prices took an early spill.

Japan reported its exports fell almost 12% in March from a year earlier, with shipments to the U.S. down over 16%. Early readings on April manufacturing globally are due on Thursday and are expected to show recession-like readings, said Reuters.

JF Apex Securities Research said US markets rallied on Friday following optimism of a drug effective in treating the coronavirus.

It said that similarly, European stocks advanced after lower coronavirus cases and plans to remove lockdowns.

“On the local market, the FBM KLCI surged 20.81 points to 1407.34 points.

“Following the positive performances in the US and Europe, the FBM KLCI could test the resistance of 1415 points,” it said.

Meanwhile, foreign selling of local equity on Bursa Malaysia accelerated to RM638.6 million last week, compared to RM326.0 million disposed in the preceding week, according to MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research’s Adam M Rahim said that in comparison to its other six Asian peers that MIDF Research monitors, Malaysia remains as the nation with the third smallest foreign net outflow on a year-to-date (YTD) basis.

He said the YTD foreign outflow from Malaysia came to RM9.1 billion.

Stay at home. We will deliver the news to you at theedgemarkets.com.