KUALA LUMPUR: Key regional markets rebounded on Friday while the FBM KLCI surged nearly 25 points and the ringgit put up a strong performance against the major currencies, underpinned by a rebound in crude oil prices.
Driving the rebound in oil and the equities markets was a hint from the European Central Bank about more quantitative easing measures.
At 5pm, the KLCI was up 24.29 points or 1.52% to 1,525.21, nearly recouping most of the week’s losses. Year-to-date, the KLCI is down 3.98%.
Turnover was 1.93 billion shares valued at RM1.79bil. Advancers beat decliners more than more than three to one with 712 gainers, 217 losers and 280 counters unchanged.
Crude oil rebounded past the key US$30 a barrel, with US light crude up US$1.29 to US$30.82 and Brent was up US$1.60 to US$30.85.
The ringgit climbed to 4.2928to the US dollar – the strongest year-to-date – from Thursday’s close of 4.3815. The local unit firmed up against the pound sterling at 6.1203 – firmest since August 2015 – from 6.2097 and it was at 3.0103 to the Singapore dollar from 3.0465. It broke past the 3.0 level earlier in the day.
Reuters reported stocks and oil, at the forefront of a global market rout since the turn of the year, rebounded strongly on Friday thanks to hints of more monetary policy support by the European Central Bank and bargain-hunting from bruised investors.
World stocks recorded their biggest rise in a month and Asian stocks their best day in three months. Oil rallied around 5% for the second day in a row, recovering from 12-year lows to above US$30 a barrel.
The surge comes a day after ECB President Mario Draghi signalled the central bank would ease policy further at its next meeting, in March to combat fading growth and disinflation, a message he reiterated at the World Economic Forum in Davos on Friday.
At Bursa Malaysia, heavyweight property-plantation Sime Darby climbed 28 sen to RM7.35 and drove the KLCI up three points.
Banks were among the top gainers, with Public Bank up 34 sen to RM18.20, CIMB 18 sen to RM4.12 and Maybank 13 sen to RM8.31 while HLFG jumed 50 sen to RM13.22. Pubic Bank’s major shareholder LPI rose 30 sen to RM15.70.
RHB Cap rose five sen to RM5.13 while AmBank and Hong Leong Bank added two sen each to RM4.32 and RM12.90.
Tenaga piled on 18 sen to RM12.80 while Genting Bhd
was up 24 sen to RM7.26 and Genting Malaysia added 13 sen to RM4.19.
Among the oil and gas counters, Petronas Daganga rose 44 sen to RM24.24, Petronas Gas 18 sen to RM21.20 but Petronas Chemicals fell one sen to RM6.90. SapuraKencana added nine sen to RM1.62.
Crude palm oil for third-month delivery jumped RM31 to RM2,453 per tonne. PPB Group gained 48 sen to RM16.10, KL Kepong eight sen to RM22.70 and IOI Corp one sen to RM4.34.
Consumer stocks also jumped on the euphoria bandwagon, with BAT up RM1 to RM55.50 and F&N 20 sen to RM18.20.
Among the key regional markets,
Japan’s Nikkei 225 surged 5.88% to 16,958.53;
Hong Kong’s Hang Seng Index added 2.90% to 19,080.51;
CSI 300 added 1.04% to 3,113.46;
Shanghai’s Composite Index added 1.25% to 2,916.56;
Shenzhen Composite rose 1.46% to 1,827.34;
Hang Seng China Enterprise rebounded 3.44% to 8,104.98;
Taiwan’s Taiex added 1.2% to 7,756.18;
South Korea’s Kospi gained 2.11% to 1,879.43 and
Singapore’s Straits Times Index 1.84% higher at 2,579.30.
Spot gold fell US$5.30 to US$1,095.90.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
