HLIB Research’s year-end FBM KLCI target stands at 1,530.
PETALING JAYA: Bursa Malaysia ended broadly higher yesterday due to bargain-hunting in banking stocks, following a selldown last Friday, and in tandem with the upbeat performance of regional peers.
At 5pm, the FBM KLCI surged 19.21 points, or 1.40%, to 1,395.89 from 1,376.68 points at last Friday’s close.
The key index opened 2.71 points higher at 1,379.39 yesterday morning and moved between 1,379.31 and 1,397.37 throughout the session.
The broader market was also positive as gainers trounced losers 513 to 343, while 420 counters were unchanged, 982 untraded and 40 others suspended.
Turnover decreased marginally to 2.61 billion units worth RM1.50bil versus 2.65 billion units worth RM2.03bil last Friday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said regionally, key indices ended higher as the decrease in the US inflation sparked optimism for the Federal Reserve to pursue a hawkish stance on monetary policy.
“Additionally, data indicating a positive shift in sentiment towards the Japanese economy propelled the Nikkei index to its highest level in 33 years.
“Over in Hong Kong, stocks rose sharply higher on hopes of China’s stimulus measure to support economic growth and employment,” he told Bernama.
Regionally, Hong Kong’s Hang Seng Index rose 2.06% to 19,306.59, China’s SSE Composite Index gained 1.31% to 3,243.98 and Shenzhen Index increased 0.59% to 11,091.56 points.
On the domestic front, Thong said the benchmark index continued its upward trajectory, thanks to improving global market sentiment.
“Having broken the 1,390 resistance, we anticipate the FBM KLCI to re-test the 1,400 mark this week.
“Nonetheless, we advise investors to remain cautious ahead of Bank Negara’s Monetary Policy Committee meeting scheduled for tomorrow and Thursday although we believe the overnight policy rate will be maintained,” he said.
He added that technically, the next resistance level is expected at 1,415 while support remained at 1,373.
Among the heavyweight stocks, Malayan Banking Bhd
pushed up 12 sen to RM8.75, Public Bank Bhd edged up nine sen to RM3.94, CIMB Group Holdings Bhd was 10 sen firmer at RM5.16 and Tenaga Nasional Bhd ticked up five sen to RM9.10.
IHH Healthcare Bhd, however, slid one sen to RM5.88.
Of the actives, RGB International Bhd put on 2.5 sen to 36 sen, TWL Holdings Bhd inched up half-a-sen to 3.5 sen while Widad Group Bhd, BTM Resources Bhd and Sarawak Consolidated Industries Bhd were flat at 42 sen, nine sen and 47 sen, respectively.
