FBM KLCI continues its advance following strong bank earnings

KUALA LUMPUR: The FBM KLCI appears on track for another positive trading session, outperforming global markets that recorded weak performances in February due to the onset of the Ukraine crisis.

"Despite the mixed sentiment on Wall Street, we believe the positive sentiment will continue on the local bourse, given the increasing inflows of foreign funds, firmer crude palm oil prices which may translate to upside on the plantation sector and decent performance in the banking sector’s results," said Malacca Securities Research in a report.

However, the research firm said upside could be capped due to the geopolitical tensions.

In addition, Bank Negara's interest rate decision, which investors are keenly watching, is due on Thursday.

At 9.05am, the benchmark index was up 9.21 points to 1,617.49. The broader market was slightly positive with 208 gainers compared to 182 decliners.

Among the key banks leading the advance, Maybank rose eight sen to RM8.84 and Hong Leong Bank gained 32 sen to RM20.38.

RHB, which had surged following the release of positive earnings yesterday, retraced nine sen to RM5.81.

Smaller sector player Alliance Bank, which also recorded positive earnings yesterday, gained three sen to RM3.46.

Meanwhile, Petronas Chemicals remained on a tear, rising 13 sen to RM9.67 as Brent crude futures continued to push higher.

Press Metal rode elevated aluminium prices higher, adding seven sen to RM6.90.

In plantations, Sime Darby Plantation gained three sen to RM4.94, IOI added four sen to RM4.64 and Kuala Lumpur Kepong climbed 38 sen to RM26.38.

Among actives on BUrsa, SMTrack lost 0.5 sen to 23.5 sen, Sanichin was flat at three sen and Matang gained 0.5 sen to 11 sen.