Thursday 28 Mar 2024
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KUALA LUMPUR (March 11): The FBM KLCI rose 5.63 points or 0.3% with Asian shares, after the European Central Bank (ECB) cut interest rates and expanded its asset-buying programme.

At 5pm, the KLCI closed at 1,696.54. Across Asia, Japan's Nikkei 225 was up 0.51%, while Hong Kong’s Hang Seng rose 1.08%.

Reuters reported Asian shares rose on Friday, on track for weekly gains, shrugging off global losses logged after the ECB eased aggressively, but suggested it was running out of room to cut interest rates, even if other stimulus options remained.

The ECB raised monthly asset buys to 80 billion euros, from 60 billion euros, and cut its main refinancing rate to zero, from 0.05%. It also cut its deposit rate by 10 basis points to -0.4% and shaved the marginal lending rate — used by banks to borrow from the ECB overnight — to 0.25%, from 0.3%.

In Malaysia, Affin Hwang Investment Bank's head of retail research Datuk Dr Nazri Khan told theedgemarkets.com that the research firm expects good sentiment to return to the share market.

Nazri said Affin Hwang had noted the positive impact from crude oil price recovery and the ECB's monetary policy.

“One of the reasons for the bullish sentiment is the recovery of oil prices. It has established itself strongly at above US$40. Secondly, the ECB’s stimulus plan was another reason why we see the risk appetite recovering,” he said.

Across Bursa Malaysia, 1.63 billion shares, worth RM1.75 billion, were traded. Advancers beat decliners by 406 to 385.

The most active stocks included AirAsia X Bhd and AirAsia Bhd. Top gainers included plantation shares, PPB Group Bhd and Kuala Lumpur Kepong Bhd.

Leading decliners included UMW Holdings Bhd and Cycle & Carriage Bintang Bhd.

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