KLCI rises on crude oil, China stimulus hope

-A +A

KUALA LUMPUR (Aug 12): The FBM KLCI rose 5.35 points or 0.3%, tracking Asian share market gains on China's economic stimulus expectation as crude oil prices rose.

China's economic stimulus sentiment followed the country's economic data, including fixed asset investment and industrial output, which were below market forecast. In Malaysia, the KLCI closed at 1,684.15 points at 5 p.m.  

In China, Hong Kong’s Hang Seng gained 0.83%, while the Shanghai Composite climbed 1.6%. Elsewhere, Japan’s Nikkei 225 rose 1.1%.

Reuters reported Asian stocks inched up on Friday, after a surge in oil prices helped propel Wall Street to record highs, while mainland shares held on to gains on hopes weaker-than-expected Chinese economic data would spur policy easing.

Oil prices edged up on Friday, remaining near the previous day's highs, on the prospect of talks by exporters about ways to prop up a market grappling with a supply overhang. Brent crude futures were trading at US$46.12 per barrel by 0645 GMT.

In Malaysia, Malacca Securities Sdn Bhd analyst Kenneth Leong told theedgemarkets.com that the KLCI tracked Asian share gains today and U.S. stock markets' overnight rise.

“For China markets, due to weaker retail sales data, investors are expecting stimulus package from the central bank,” Leong said.

Bursa Malaysia saw 2.02 billion shares, worth RM1.9 billion, traded. Gainers outnumbered decliners at 487 versus 314.

Top gainer was Panasonic Manufacturing Malaysia Bhd, while Nestle (M) Bhd was top decliner. Talam Transform Bhd was the most actively-traded stock.