KUALA LUMPUR: Blue chips rebounded early Thursday as investor sentiment was galvanised by the rebound on Wall Street and key Asian markets following the previous day’s tumble when Donald Trump headed to victory in the US presidential election.
At 9.30am, the FBM KLCI was up 12.54 points or 0.76% to 1,660.16 after tumbling on Wednesday. Turnover was 330.50 million shares valued at RM165.95mil. There were 42 gainers, 55 losers and 151 counters unchanged.
Reuters reported Australian shares soared 3% in early trade on Thursday, the biggest one-day jump in five years.
The S&P/ASX 200 index ricocheted 2.95% or 152.144 points, to 5,308.700 by 1205 GMT after a tumultous day on Wednesday where it ended 1.9% lower, in its biggest fall since the Brexit vote in June. New Zealand stocks also rebounded.
Kenanga Investment Bank Research said it expected higher market volatility with Trump's surprise victory.
“Generally speaking, the market is concerned over his stance in trade protectionism that could limit international trade. However, market sentiment is mixed over his tax cuts and expansionary spending growth strategy, which could weigh on US fiscal position and US dollar,” it said.
Kenanga Research believes it is still too early to draw conclusions on Trump's win, hence, it is maintaining its end-2016 index target of 1,715 (end-2017: 1,755) and its FY16F earnings growth estimate of 1.6% (FY17F: 7.2%) for now.
“Moreover, as the discount of FBM KLCI over its consensus target is fast approaching its 12-month average (of 4.6% or implying index level of 1,638), we believe buying opportunities could have emerged,” it said.
Oil prices dipped early on Thursday pulled down by rising US crude inventories and as markets tried to interpret Trump's surprise victory.
US West Texas Intermediate (WTI) crude futures were down 20 cents from their last settlement at US$45.07 a barrel at 0131 GMT. International Brent crude oil futures were trading at US$46.29 per barrel, down 7 cent from their last close.
Petronas Dagangan rose 24 sen to RM23.64 while among plantations, KL Kepong added 40 sen to RM24 and Genting Plantations rose 24 sen to RM10.72.
KESM added 21 sen to RM9.01 and SAM Engineering 20 sen to RM6.90.
Vivocom was the most active with 33.4 million shares. It rose one sen to 18 sen. TA Global extended its gains for the second day, up 1.5 sen to 26.5 sen.
MBM Resources fell 10 sen to RM2.50 and Bursa Malaysia eight sen lower at RM8.60.
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