Bursa picks up as US Fed signals gradual approach to interest rate hikes

KUALA LUMPUR: Bursa Malaysia rose on improved sentiment on Monday as comments from the US Federal Reserve chairman on Friday served to ease fears of rapid interest rate hikes.

Jerome Powell said last week that a gradual approach to raising interest rates was in the best interest of the US economy and job growth, giving Wall Street a lift at the week's close.

Asian markets rose in unison on Monday with Shanghai's Composite Index gaining 1.4%, Hong Kong's Hang Seng adding 2% and Japan's Nikkei rising 1.1%.

At 12.30pm, the FBM KLCI rose 2.81 points to 1,811.40. Trading volume was 1.82 billion shares valued at RM868.20mil. There were 323 gainers versus 489 decliners and 356 counters unchanged.

Leading the gains, Petronas Chemicals rose 14 sen to RM9.51 while Maybank added 10 sen to RM9.91.Petronas Gas advanced 38 sen to RM18.88.

Meanwhile, Axiata fell eight sen to RM4.64 following the announcement of weak earnings on Friday. CIMB also dropped four sen to RM5.94 while Nestle shaved 30 sen to RM147.20 and Genting lost nine sen to RM8.65.

On the broader market, united Plantation climbed 32 sen to RM27.34, Carlsberg added 20 sen to RM20.36 and Magi-tech gained 14 sen to RM4.96.

On the losing end, Pos Malaysia skidded 35 sen to RM3.82, IQ Group slid 12 sen to RM1.65 and UMW slipped 11 sen to RM5.98.

Oil prices slipped on Monday despite a decline in US rig counts and inventories as fears over the US-China trade war weighed.

WTI crude slid five cents to US$66.66 a barrel while Brent crude lost three cents to US$75.79 a barrel.

In currencies, the ringgit rose 0.2% against the greenback at 4.1000. It was also 0.1% higher against the pound sterling at 5.2695 and 0.2% weaker against the Singapore dollar at 3.0040.