KUALA LUMPUR: The FBM KLCI posted its strongest gain in over two years, with the ringgit appreciated as the political deadlock finally ended following the appointment of Datuk Seri Anwar Ibrahim as Malaysia's 10th Prime Minister.
The benchmark index surged 58.38 points, or 4.04% to 1,501.88, its highest since late August 2022. The move is the biggest since rising 6.85% on March 20, 2020. The index hit an intraday high of 1,502.11.
Market breadth was positive with 981 securities ending in the green against 197 that closed weaker.
Activities were encouraging with 6.86 billion shares worth RM4.19bil changed hands.
The ringgit was quoted at 4.4915, appreciating 1.83% against the US dollar. It is one of the best performer in Asia.
The local currency was up 0.91% against the euro at 4.6804. It rose 0.47% against the pound sterling at 5.4287 and advanced 1.16% against the Singapore dollar at 3.2691.
Kenanga Research expects the continuation of prevailing policy inclinations including pro-business, protectionism for local industries, business-as-usual for government-linked companies, strong fiscal support to the economy with cash handouts, fuel, and food subsidies, and pump-priming.
“We continue to advocate investors to seek refuge in banks, telcos, auto makers/distributors, mid-market retailers and construction as we believe the “unity” government will be supportive of domestic consumption.
“We raise our end-2022 FBM KLCI target back to 1,500 pts from 1,450 points,” Kenanga said.
In today’s session, 27 of the KLCI-component stocks were traded higher while three counters declined.
Axiata contributed the most to the index gain and had the largest move, increasing 12.77%, or 36 sen to RM3.18.
On the other hand, Sime Darby Plantation
was the biggest drag on the index and had the biggest drop, declining 2.03% or nine sen to RM4.34.
Gaming and brewery companies including Genting Malaysia, Carlsberg Brewery Malaysia, Heineken Malaysia and and Sports Toto finished higher.
Genting Malaysia gained 20 sen to RM2.72, Carlsberg jumped 94 sen to RM22.94, Heineken surged RM1.56 to RM24.88 and Sports Toto rose nine sen to RM1.70.
Elsewhere in the region, Japan’s Nikkei Stock Average rose 0.95%, South Korea’s Kospi closed up 0.96%, China’s Shanghai Composite index was down 0.25% and Hong Kong’s Hang Seng Index rose 0.78%.
