Bursa Malaysia opens higher after Wall Street’s relief rally

On the broader market, losers thumped gainers 1,007 to 103 while 260 counters were unchanged, 904 untraded and 21 others suspended. — Picture by Azneal Ishak

On the broader market, losers thumped gainers 1,007 to 103 while 260 counters were unchanged, 904 untraded and 21 others suspended. — Picture by Azneal Ishak

Monday, 27 Jun 2022 10:19 AM MYT

KUALA LUMPUR, June 27 — Bursa Malaysia opened higher today following a relief rally staged by Wall Street last Friday with all three major US indices closing broadly higher, a dealer said.

At 9.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 2.99 points to 1,439.69 from Friday’s close of 1,436.70.

The benchmark index opened 2.12 points higher at 1,438.82.

Overall market breadth was positive as gainers surpassed losers 198 to 99, while 189 counters were unchanged, 1,822 untraded and 55 others suspended.

Turnover stood at 169.15 million units worth RM58.65 million.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said despite facing numerous headwinds, the Dow Jones Industrial Average ticked up 823 points and the Nasdaq Composite jumped 375 points as the US 10-year yield increased to almost the 3.14 per cent level last Friday. The S&P 500 added 116.01 points to finish at 3,911.74.

On the home front, given that the FBM KLCI made a mild comeback attributed to bargain-hunting activities and backed by the strong performance on Wall Street on Friday, it was anticipated that regional markets would ride on the uptrend, he said.

“Hence, expect to see the local bourse to improve today. We expect the benchmark index to trend in the 1,430-1,445 range today,” Thong told Bernama.

On the commodities, he said that crude palm rebounded to almost the RM4,900-per-tonne level with Brent crude also ending higher at US$113 (RM497) per barrel.

Meanwhile, Malacca Securities said sectors in focus today may see the technology sector continue to bounce higher following the overnight rally on Nasdaq.

It is also positive on sectors like real estate investment trust and consumer sectors as “safer bets.” “On the other hand, we foresee the government’s decision to retain the ceiling price for chicken will hamper the poultry sector once again,” said the brokerage firm in a note.

Among the heavyweights, Maybank rose four sen to RM8.64 and Public Bank added one sen to RM4.44.

Petronas Chemicals was down seven sen to RM9.18, CIMB eased one sen to RM4.89, and Tenaga fell five sen to RM8.14, while IHH was flat at RM6.42.

Of the actives, Green Packet and Reach Energy improved one sen each to 7.5 sen and 9.5 sen, respectively, while Cypark Resources and ATA IMS both increased 1.5 sen to 48 sen and 35.5 sen, respectively.

On the index board, the FBM Emas Index was 34.37 points stronger at 10,291.76, the FBM 70 gained 88.00 points to 12,532.15, the FBM Emas Shariah Index appreciated 27.47 points to 10,442.11 and FBMT 100 Index expanded 32.61 points to 10,030.79, while FBM ACE strengthened 44.98 points at 4,814.57.

Sector-wise, the Financial Services Index gained 60.58 points to 16,025.03, while the Plantation Index was up 0.69 of-a-point to 6,918.42 and the Industrial Products and Services Index rose by 0.33 of-a-point to 183.70. — Bernama