PETALING JAYA: The rally in the local stock market continued, as investors took positions on expectations of a quick recovery in the economy from the coronavirus (Covid-19) pandemic.
The benchmark index – the FBM KLCI – was fuelled by gains in blue-chip counters, especially banking stocks that hogged the top-gainers’ list.
The benchmark index rallied for six consecutive days and closed 30.84 points higher to 1,538.53 times yesterday.
Stocks such as Public Bank Bhd gained almost RM1.70 to close the day at RM17.38 per share. Hong Leong Financial Group Bhd surged RM1.82 to RM15 apiece, Maybank rose 47 sen to RM7.98 and CIMB Group Holdings Bhd jumped 16 sen to RM3.48 a share.
Bursa Malaysia’s financial services index closed up 563.67 points or 4.44% at 13,255.37, the highest in three months.
Rakuten Trade vice-president Vincent Lau said the economic numbers were improving and that recovery was clearer, especially with the lifting of circuit breakers in Singapore and rebound in manufacturing data.
He pointed out that the improvement in global crude oil prices had pushed the local market higher, especially with more countries now slowly increasing their economic activity.
“While recovery could be slow this year, at least the worst is over and more businesses are coming back, ” he told StarBiz.
Meanwhile, a business owner said that there could be a correction in the market in October, as many businesses and households would need to start paying their loans as the moratorium ended. “There will be less liquidity especially from retailers as people will need to start paying their loan commitments, ” he said.
Bursa’s retail participation has been one of the highest in recent months, as investors took advantage of the depressed share prices, albeit by foreign selling. Last month, foreign investors sold RM3bil net of local stocks, which brought the total to RM13.3bil of net disposal then, according to data by MIDF Research.
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