Bursa Malaysia proves resilience, KLCI up 35pt

KUALA LUMPUR: Local funds and local retail investors jumped in to snap up oversold counters in mid-morning trade on Tuesday, setting the pace for a firm start in December, after the selldown by foreign funds the previous day.

At 10.19am, the FBM KLCI was up 35.17 points or 2.25% to 1,597.88. Turnover was 2.78 billion shares valued at RM1.38bil. Advancers beat decliners 608 to 340 while 416 counters were unchanged.

Reuters earlier reported Asian share markets opened slightly higher buoyed by the prospect of a Covid-19 vaccine, reversing the previous day's dips as investors took profits at the end of a record-breaking month.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.26% on Tuesday after closing the month 9% higher, the best November since 2001. Japan's Nikkei and Australia's S&P/ASX 200 were each 0.9% higher, while South Korea was up 1.4%.

At Bursa, banks and Tenaga underpinned the rebound.

Hong Leong Bank gained 74 sen to RM17.92 and Public Bank 70 sen to RM18.10 while Maybank advanced 29 sen to RM8.19.

Tenaga jumped 60 sen to RM10.68 and Petronas Chemicals 38 sen to RM6.80.

“The drop in the KLCI yesterday is likely driven by the MSCI rebalancing, as well as the upcoming reshuffling in the KLCI components. Some funds were selling their positions from the recent rally in the stock market and holding cash to make new positions for 2021, ” Stariz quoted a fund manager as saying.

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