KUALA LUMPUR: Bursa Malaysia capped the week on a strong note as trading value surged to RM5bil, the highest since May 31, 2016, powered by foreign fund buying of banks, Axiata and Petronas Chemicals after a positive outlook from Credit Suisse Research.
At 5pm, the FBM KLCI was up 8.06 points or 0.46% to 1,745.20 – about the highest since mid-2015 but off the day's best as key Asian markets retreated.
Trading volume on Bursa was 4.98 billion shares – a surge from the average three billion over units done each. Trading value was RM5.03bil, reflecting the better quality of buying. Advancers beat decliners 591 to 368 while 359 counters were unchanged.
Stock market data showed foreign funds were net buyers at RM816mil, compared with over RM600mil on Thursday. Local institutions were net sellers at RM738.2mil while retailers were net sellers at RM77.9mil.
Credit-Suisse Research believes the 45-month 34% US dollar underperformance of Malaysian equities (20% in local currency terms) was warranted. However, it has now reached an end game.
In a recent research report, the foreign research house said it had now turned positive on Malaysia.
Meanwhile, key Asian markets retreated with China's main stock indexes posting their worst day since last December, as investors await fresh evidence of a sustainable recovery in the world's second-largest economy, said Reuters.
On the currency front, the pound sterling rose for the third day running against the dollar on Friday for the first time since mid-January, drawing confidence from signs some at the Bank of England may be leaning toward a rise in interest rates to support the currency, Reuters reported.
The ringgit rose 0.06% against the US dollar to 4.4355 from 4.4383. However, the local unit fell against the pound, sliding 1.17% to 5.5042 from 5.4403, weakened 0.26% against the Singapore dollar to 3.1676 from 3.1594 and lost 0.67% against the Euro to 4.7857 from 4.7539.
Finance and bank stocks were the top gainers. Public Bank rose 30 sen to RM20.18 and pushed the KLCI up 1.98 points, CIMB added six sen to RM5.65 and Maybank five sen higher at RM8.90 while AmBank gained two sen to RM4.87 and RHB Bank edged up one sen to RM5.26.
Aeon Credit
was the top gainer of the day, up 70 sen to RM16.50 while HLFG added 16 sen to RM16.16. Insurer Allianz added 28 sen to RM11.68.
US light crude oil climbed 19 sen to US$48.94 and Brent 14 sen higher at US$51.88. Petronas Chemicals rose 15 sen to RM7.43 and nudged the KLCI up 2.04 points, Petronas Dagangan added 22 sen to RM23.84 but Petronas Gas lost two sen to RM19.78.
As for consumer stocks, Nestle rose 22 sen to RM76.82, BAT added 20 sen to RM47.90.
Crude palm oil for third month delivery was flat at RM2,796 per tonne. United Plantations rose 20 sen to RM28.30, KL Kepong six sen to RM24.76, Sime Darby and PPB Group four sen higher at RM9.34 and RM16.82.
However, TAHPS and Far East lost 10 sen each to RM6.40 and RM8.70 while IOI Corp shed one sen to RM4.69
Axiata was the top mover among the KLCI stocks, up 16 sen to RM4.97 and nudging the index up 2.44 points. Digi was flat at RM5.15, Telekom lost four sen to RM6.32 and Maxis shed seven sen to RM6.33. Time dotCom jumped 17 sen to RM8.70.
Dataprep surged 16.5 sen to 43.5 sen with 173 million shares done.
IHH Healthcare fell nine sen to RM5.98 and erased 1.26 points from the KLCI, MISC lost 11 sen to RM7.34. Genting Bhd was down six sen to RM9.79 but Genting Malaysia gained five sen to RM5.47.
Rohas-Euco made a dismal start, skidding 23 sen to 89 sen with 6.33 million shares. It took over Tecnic Group and assumed its listing status. The paid-up jumped from 40 million shares to 400 million shares after the takeover.
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