KUALA LUMPUR (July 8): The FBM KLCI finished 16.78 points or 1.07% higher at 1,583.50 today in heavy trading on liquidity-driven buying.

Trading volume across Bursa Malaysia rose to another record high at 11.81 billion shares, worth RM4.36 billion. The previous record was 11.21 billion shares, registered on May 18.

Gainers surpassed losers at 619 to 353, while 482 counters closed unchanged.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan said there was strong buying interest as more investors shifted their funds to the market. 

“The current low interest rates environment encourages investors to pour money into the equity market, as elsewhere the returns are pretty low,” Wan told theedgemarkets.com. 

Bank Negara Malaysia yesterday announced another cut in the Overnight Policy Rate (OPR) by 25bps to 1.75%, a record low since the floor was set in 2004. 

So far this year, the central bank has slashed the OPR four times for a cumulative 125bps reduction.

In a note today, Hong Leong Investment Bank Research said it is not discounting the possibility that BNM will cut the OPR by another 25 bps in September.

Top gainers among the KLCI component stocks were Hap Seng Consolidated Bhd (up 53 sen or 6.22% at RM9.05),  Petronas Dagangan Bhd (up 72 sen or 3.55% at RM21) and CIMB Group Holdings Bhd (up 10 sen or 2.7% at RM3.80). 

Elsewhere in Asia, stocks dithered as an increase in coronavirus cases in some parts of the world undermined prospects for a quick economic recovery while oil prices eased on oversupply fears, Reuters reported.

Japan's Nikkei 225 dipped 0.78% and South Korea's Kospi sank 0.24%. Hong Kong’s Hang Seng Index, however, gained 0.59% while the Shanghai Stock Exchange Composite Index rose 1.74%.