KLCI rises 3.73% as component stocks ride US stimulus rally

KLCI rises 3.73% as component stocks ride US stimulus rally
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KUALA LUMPUR (March 25): The FBM KLCI rose 3.73% at mid-morning Wednesday as all index component stocks rallied, riding on the US stimulus rally against the backdrop of firmer regional markets.

At 10am, the FBM KLCI jumped 50.14 points to 1,341.28.

Market breadth turned positive with 697 gainers and 94 losers, while 170 counters traded unchanged. Trading volume was 1.21 billion shares valued at RM657.09 million.

The leading movers included Genting Bhd, Hong Leong Bank Bhd, Public Bank Bhd, Hong Leong Financial Group Bhd, PPB Group Bhd, Dutch Lady Milk Industries Bhd, Carlsberg Brewery Malaysia Bhd and Heineken Malaysia Bhd.

The actives included Hibiscus Petroleum Bhd, AirAsia Group Bhd, Velesto Energy Bhd, Vortex Consolidated Bhd, Bumi Armada Bhd, Jaks Resources Bhd and Ekovest Bhd.

The decliners included Fraser & Neave Holdings Bhd, Rapid Synergy Bhd and Malaysia-listed Hang Seng Index-linked put warrants.

Reuters said Asian shares extended their rally on Wednesday in the wake of Wall Street's big gains as US Congress appeared closer to passing a US$2 trillion stimulus package to curb the coronavirus pandemic's economic toll.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3% with Australian shares rising 4.5% and South Korean shares gaining 4.0%. Japan's Nikkei added 2.0%, it said.

Hong Leong IB Research said following the Dow’s 11.4% surge overnight amid stimulus deal hopes, KLCI should stage a back-to-back gain today, boosted by Bursa and Securities Commission Malaysia's suspension of short selling, and positive expectation of a more comprehensive Covid-19 stimulus package on March 30, to soften the blow from the coronavirus outbreak and weak oil prices.

“However, FTSE Russell’s decision about keeping Malaysia in its World Government Bond Index (by end-March) and the fear that the government may consider extending the MCO could cap further rally beyond 1,350-1,360 zones,” it said.