KUALA LUMPUR: The stock market key indicator punched convincingly through the 900 level on investor optimism that the Barisan Nasional government will win a clear mandate in this Sunday’s general election.
The Kuala Lumpur Composite Index (CI) shot through the 900 mark early in the mid-morning session as trading momentum built up with strong buying support from institutional investors targeting blue chips counters.
The strong buying interest was followed through in the afternoon session, leading the CI to close 11.33 points or 1.3% higher at 901.47. It was the highest level of the CI in nearly four years.
Other key indicators also notched up strong gains, with the Emas Index adding 2.33 points to 221.55, while the Second Board Index put on 1.1 points to close at 142.06.
Market observers said investors had rallied behind blue chips counters, most of which showed their strongest one-day gains in the recent months.
“The market apparently has reacted to a large win by the Barisan this Sunday,” said CIMB Bhd head of research Toh Hoon Chiew.
The exchange’s top three largest companies, Malayan Banking, Telekom and Tenaga Nasional, were among the top gainers.
The strong market performance was expected to continue today ahead of election day and early next week, said analysts, some of whom said they expected the KLCI to reach the 950 level at the end of the month.
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