Bursa joins global rally as UK central bank pivots to bond purchasing


KUALA LUMPUR: The domestic market retraced higher at the opening bell following a global rally triggered by the Bank of England's move to purchase bonds in an effort to dampened borrowing costs and support the pound sterling.

At 9.05am, the FBM KLCI was up 6.63 points to 1,408.52, tracking US markets that jumped 2% overnight as Treasury yields retreated from a 12-year high.

The number of counters on the rise outnumbered decliners 261 to 56. Trading volume was 122. 64 million shares valued at RM57.1mil.

Overnight, the three major US indices rebounded between 1.9% and 2.1% following days of strong selling pressure following the UK central bank's announcement it would temporarily buy long-dated bond to mitigate the surge in UK bond yields.

The sterling, which had fallen to record levels against the US dollar, jumped about 1.4% in a volatile session.

Back home, the FBM KLCI was seen falling below its 52-week low at 1,410 after a five-day losing streak.

However, Malacca Securities Research, which forecast a technical rebound, said the index could see next resistance at 1,450-1,460 while support is at 1,380-1,400.

Most blue chips recovered some ground including banks such as Maybank up four sen to RM8.60, CIMB rising six sen to RM5.17 and RHB gaining four sen to RM5.56.

IHH was up five sen to RM5.98 amid analyst expectations of more upside for the healthcare provider following India's Supreme Court clearing it of any wrongdoing in its Fortis investment.

Press Metal rose three sen to RM4.03 and Sime Darby Plantation was up four sen to RM4.12.

Meanwhile, top active counters included PT Resources up 2.5 sen to 44 sen, SNS gaining one sen to 28 sen and Top Glove rising 0.5 sen to 59.5 sen.

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Bursa Malaysia , FBM KLCI , equities

   

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