THE government decision to cut interest rates to historic low levels as part of the measures to boost the economy lifted stocks on the KLSE for the sixth consecutive day.
Banking stocks, which analysts said would face a margin squeeze following the rate cut, posted marginal gains, with the Finance Index closing 0.3% higher at 4,877 points.
“The rate cut had been largely factored in. Nevertheless, the news was positive for the broader market,'' said MIDF-Sisma economist Azrul Azwa.
Malayan Banking Bhd closed flat at RM7.95, Public Bank Bhd up 1 sen at RM2.22 and Commerce Asset-Holdings Bhd, which yesterday reported a 7% increase in pre-tax profit to RM185mil in the first quarter, ended 5 sen higher at RM2.95.
Selected property stocks also saw strong gains. The property sector received several incentives under the stimulus package to tackle the property overhang.
SP Setia Bhd rose 11 sen to RM2.23 and Sunrise Bhd gained 5 sen to RM1.23.