Wall Street rally gives Bursa a boost
Published on: Friday, January 27, 2023
By: Bernama
Kuala Lumpur: Bursa Malaysia rebounded from two days of losses to open higher today, taking the cue from the strong performance on Wall Street overnight.
Dealers have attributed the rally in US stocks to the stronger-than-expected growth in the gross domestic product (GDP) of the world’s largest economy.
ADVERTISEMENT
Preliminary data showed that the GDP had expanded at a quicker-than-expected pace of 2.9% year-on-year in the fourth quarter of last year (4Q 2022) despite the aggressive interest rate hikes, dealers said.
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) added 1.05 points to 1,499.44 from yesterday’s close of 1,498.39.
The market bellwether opened 1.58 points higher at 1,499.97.
On the broader market, gainers led decliners 213 to 102, while 245 counters were unchanged, 1,687 were not traded and 49 others suspended.
ADVERTISEMENT
Turnover amounted to 269.26 million units worth RM82.23 million.
Malacca Securities Sdn Bhd said that despite the weakness on Bursa recently, the key index is expected to re-test the 1,500-level, taking the cue from the positive sentiment on Wall Street overnight.
ADVERTISEMENT
It noted that the lower liners are staying firm amid strong buying interest, but the brokerage firm cautioned that the overbought position in most stocks across Bursa Malaysia may attract quick profit-taking over the foreseeable future.
Globally, the stronger-than-expected economic data in the US may continue to lend support for further recovery on Wall Street, it said.
Commodities wise, it said the Brent crude oil recovered all its previous session losses to close above US$87 per barrel on the back of larger-than-expected drawdown in natural gas inventory, while the crude palm oil (CPO) price ticked slightly higher, approaching RM3,800 per tonne.
“We expect the energy sector to take the spotlight in tandem with the rebound in crude oil prices,” Malacca Securities said.
“The positive sentiment on Nasdaq overnight may boost trading interest in the technology sector. Meanwhile, the strong numbers delivered by Capital A Bhd may boost the aviation and tourism related stocks,” it added.
Among the heavyweights, Maybank added a sen to RM8.79, Public Bank eased a sen to RM4.27, Petronas Chemicals shed four sen to RM8.47, CIMB slid two sen to RM5.70, while Tenaga Nasional was flat at RM9.52.
As for the actives, MMAG edged up half-a-sen to 2.5 sen, ATA IMS and Cypark added 3.5 sen each to 43 sen and 99.5 sen respectively and Tanco improved one sen to 36 sen.
On the index board, the FBM Emas Index gained 11.73 points to 10,892.65, the FBMT 100 Index bagged 12.86 points to 10,566.96, and the FBM Emas Shariah Index perked up 23.68 points to 11,172.81.
The FBM 70 Index rose 40.22 points to 13,719.69 while the FBM ACE Index increased 21.66 points to 5,709.25.
Sector-wise, the industrial products and services index improved 0.47 of-a-point to 191.02, the energy index added 3.82 points to 874.46, and the plantation index climbed 23.28 points to 6,866.89, while the financial services index gave up 19.23 points to 16,484.56.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
