KLCI rises 0.98%, eyes 1,600-point threshold on global equity rally

KLCI rises 0.98%, eyes 1,600-point threshold on global equity rally
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KUALA LUMPUR (Nov 25): The main index at Bursa Malaysia inched closer to the 1,600-point threshold at noon break Wednesday, tracking the global market rally after the fresh overnight records at Wall Street.

At 12.30pm, the FBM KLCI rose 0.98% or 15.44 points to 1,593.83.

Market breadth was positive with 448 gainers and 253 losers, while 799 counters traded unchanged. Trading volume was 5.19 billion shares valued at RM2.29 billion.

The gainers included Gets Global Bhd, Public Bank Bhd, Nestle (M) Bhd, Malaysian Pacific Industries Bhd, Carlsberg Brewery Malaysia Bhd, Kumpulan Powernet Bhd, Sarawak Consolidated Industries Bhd, Hong Leong Financial Group Bhd and Hong Leong Bank Bhd.

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

The decliners included Greatech Technology Bhd, Top Glove Corp Bhd, Pintaras Jaya Bhd, Hap Seng Consolidated Bhd, Dutch Lady Milk Industries Bhd, Time dotCom Bhd, Khind Bhd and Scientex Bhd.

Reuters said world shares rallied to a record peak on Wednesday, following an overnight surge that saw the Dow Jones benchmark crack 30,000 for the first time as investors cheered a dramatically improved global outlook.

The formal start of US president-elect Joe Biden's transition to the White House and increasing confidence a Covid-19 vaccine would be ready soon ushered in renewed appetite for global shares, it said.

Hong Leong IB Research said although overnight Dow’s strong record closing and a 3.9% rally in Brent oil price may provide a fillip to the local bourse today, any technical rebound is likely to be capped near 1,600-1,618 zones amid grossly overbought technical readings, lingering concerns over extended CMCO and protracted economic damage to Malaysia following unabated surge in Covid-19 cases, and the Budget 2021 approval tomorrow.

“Key supports are pegged at 1,555-1,535 levels,” it said.