Bursa Malaysia opens firmer on improved global sentiment

KUALA LUMPUR: Bursa Malaysia opened higher on Thursday, tracking Wall Street's positive overnight performance as improving global sentiment and easing geopolitical concerns lifted investor confidence.

At 9.10 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 11.16 points, or 0.69 per cent, to 1,627.72 from Wednesday's close of 1,616.56.

The benchmark index opened 6.72 points higher at 1,623.28.

In the broader market, losers outnumbered gainers 241 to 232, while 268 counters were unchanged, 2,020 untraded and 10 suspended.

Turnover stood at 263.87 million units worth RM148.93 million.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the local bourse could see renewed buying interest following the previous session's profit-taking activities, supported by lower crude oil prices and improving external sentiment.

He said Wall Street had closed sharply higher following the Democrats' significant gains in the US midterm elections, which helped ease some of the economic and geopolitical uncertainties weighing on markets.

"Back home, we believe the index may see strong buying support today, particularly as crude oil prices have retreated," he told Bernama.

Thong noted that Brent crude had weakened to below US$95 per barrel amid hopes of easing tensions in West Asia, providing support to market sentiment, with the FBM KLCI expected to trend within the 1,615 to 1,630 range today.

Among the 30 FBM KLCI constituents, 24 counters were trading higher, one lower and five unchanged.

Banking heavyweight stocks were all firmer ahead of Bank Negara Malaysia's Overnight Policy Rate decision, due later in the afternoon, with expectations of an interest rate hike lending support to the local currency.

Of the heavyweight stocks, Maybank and IHH Healthcare were 10 sen firmer at RM10.00 and RM7.88, respectively, while Public Bank rose four sen to RM4.81, CIMB gained 11 sen to RM7.02, and Tenaga Nasional was flat at RM13.14.

In active trade, AirAsia rose eight sen to 53.5 sen, Capital A gained three sen to 26 sen, while Dagang Nexchange, VS Industry and MMAG were half a sen lower at 41.5 sen, 33 sen and two sen, respectively.

Nestle led the top gainers, rising RM1.00 to RM94.50, while Hong Leong Bank gained 26 sen to RM21.50, Allianz rose 20 sen to RM19.72, Hong Leong Financial gained 18 sen to RM17.64, and PPB advanced 14 sen to RM9.00.

Among the top losers, MPI fell RM1.20 to RM39.42, Vitrox lost 36 sen to RM10.54, Hengyuan Refining dropped 32 sen to RM3.30, UWC slipped 19 sen to RM7.01, and Petronas Chemicals fell 18 sen to RM4.52.

On the index board, the FBM Emas Index surged 52.26 points to 12,130.24, while the FBM Top 100 Index gained 57.67 points to 11,942.75.

The FBM Mid 70 Index fell 17.14 points to 17,494.11, the FBM Emas Shariah Index advanced 13.78 points to 12,118.21, and the FBM ACE Index declined 15.85 points to 5,404.93.

Sector-wise, the Industrial Products and Services Index edged down 0.60 of a point to 177.61, while the Energy Index fell 13.91 points to 814.01. The Financial Services Index gained 200.40 points to 18,786.71, while the Plantation Index rose 45.79 points to 8,807.67.