KLCI advances in line with key regional markets

The Malaysian stock index rose 0.9% on Wednesday, its biggest gain in more than two weeks, after the previous session's lowest close since September 2013 on concerns over declining crude oil prices.

KUALA LUMPUR: The FBM KLCI advanced on Friday, in line with key regional markets, taking cue from a positive lead at Wall Street.

The benchmark index was 4.96 points at midday, after opening 3.22 points higher at 1,633.75.

The broader market was weaker with decliners outpacing advancers. There were 327 gainers versus 279 losers while 347 stocks remained unchanged. Turnover stood at 677.90 million shares worth RM550.21mil.

Hong Leong Investment Bank (HLIB) said the local market was likely to continue to be muted today ahead of the beginning of fasting month next Monday onwards; and US economic data, which may give some clues on likelihood of US interest rate hike later in this month.

“Moreover, local sentiment is also likely to see further consolidation given expectation of lower market consensus for the KLCI year-end target due to local earnings result jitters,” it added.

Despite the lackluster local sentiment, HLIB opined that export-oriented stocks may gain strong buying momentum.

The anticipation of higher likelihood of US interest rate hike in June is likely to translate into weaker Ringgit against US dollar, hence putting export-oriented stocks back in the spotlight.

Wall Street indices closed higher overnight amid signs of steady job gains that indicated the economy is strong enough for higher interest rates as early as this summer.

The S&P 500 gained 0.3% to 2,105.26. The Dow Jones Industrial Average added 48.89 points (0.3%) to 17,838.56.

Among the top gainers at Bursa Malaysia, KESM Industries surged 59 sen to RM4.66, Hong Leong Financial Group rose 18 sen to RM14.88, Amway added 15 sen to RM9.15 and Dutch Lady Milk Industries accumulated 14 sen to RM55.

The decliners included Goldis, SLP Resources, Carlsberg and Scientex.

The ringgit strengthened to 4.1470 compared.

Brent crude was last traded at US$50.03 per barrel while US crude traded at US$49.19 per barrel.

Spot gold gained 0.09% to US$1,212.11 per troy ounce.

Among the key regional markets:

Japan’s Nikkei 225 is up 0.27% to 16,607.36;

Hong Kong’s Hang Seng Index is up 0.37% to 20,935.54 ;

Shanghai Composite Index up 0.15% to 2,929.50;

Taiwan’s Taiex gained 0.37% to 8,587.36;

South Korea’s Kospi fell 0.11% to 1,983.00 and;

Singapore’s Straits Times Index is up 0.43% to 2,807.19 points.