Bursa joins global relief rally following release of Fed minutes

KUALA LUMPUR: The positive momentum continued on the domestic market following the pick-up on Wall Street overnight as the minutes of the US Federal Reserve's open market committee meeting did not offer up any negative surprises.

The meeting minutes, released yesterday, showed members of the central bank's monetary policy committee were unanimous in their decision to hike rates for another two rounds of 50 basis points, which was in line with expectations.

There was also consideration given to the effects of a tighter policy on financial stability after some corporates warned of the impact of inflation and the central bank's subsequent countermeasures on earnings.

The major US market indices rallied between 0.6% and 1.5% each following the news, in a sign that investors were growing more optimistic that fears over an impending recession were overblown.

At 9.05am, the FBM KLCI was up 3.33 points to 1,538.89 in line with the relief in global markets. The overall market was positive with 162 gainers compared with 134 decliners.

Bank stocks were also seen rising in anticipation of their earnings results scheduled to be released over the next few days.

Maybank was up four sen to RM9, Public Bank rose four sen to RM4.59, CIMB gained one sen to RM4.96 and Hong Leong Bank climbed 12 sen to RM21.12.

Other gainers included IHH rising three sen to RM5.46, Press Metal up one sen to RM5.21 and Nestle climbing 40 sen to RM134.30.

Plantations however faltered as Sime Darby Plantation fell four sne to RM5.03 and Kuala Lumpur Kepong slid 12 sen to RM26.18.

Leading the actives, Serba Dinamik was up 1.5 sen to 11.5 sen, Cypark gained 3.5 sen to 41.5 sen and Avillion rose 0.5 sen to 8.5 sen.

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Bursa Malaysia , FBM KLCI , equities


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