KL shares open on better note as political uncertainty subsides

KL shares open on better note as political uncertainty subsides

KUALA LUMPUR: Bursa Malaysia opened on a better note today as uncertainty over the local political scenario has subsided after the Malay Rulers meeting yesterday.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.62 points to 1,496.26 from 1,494.64 at Friday’s close.

The market barometer opened 0.92 of-a-point better at 1,495.56.

On the scoreboard, gainers staged a rebound from last Friday’s slip, leading 310 to 137 losers, while 299 counters were unchanged, 1,424 untraded and 43 others suspended.

Total volume stood at 456.36 million units worth RM274.94 million.

Malacca Securities, in its note, said a rebound would be seen in small and medium cap stocks that witnessed an outflow on Friday as investors, especially retail which exited the market, as uncertainty over the political scenario has subsided following the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah’s decree yesterday.

The Yang di-Pertuan Agong, in a statement issued by Istana Negara yesterday afternoon, stated that there was no need for a state of emergency to be declared in the country.

Al-Sultan Abdullah said this was decided after going through the proposal to the effect by Prime Minister Tan Sri Muhyiddin Yassin with the Malay Rulers, as well as looking at the country’s current situation

Malacca Securities, however, said with the rising number of Covid-19 cases in the country, as well as the possible extension of the conditional controlled movement order (CMCO) in Selangor, Kuala Lumpur, Putrajaya, and Sabah, is expected to cap the gains of the local bourse for now.

Meanwhile, an analyst said the FBM KLCI would be on a quiet tone unbarring further local political uncertainty as investors await for three main agenda in the coming weeks.

“On the local front, Budget 2021 will be the ultimate market mover followed by the overnight policy rate by the central bank.

“On external factor, the US presidential election, which will be held on Nov 3, will be the guidance for foreign investors for their further market direction,” she said.

On the technical forefront, the FBM KLCI will be traded with a support at 1,485 and the immediate resistance at 1,510.

Of the heavyweights, Maybank added two sen to RM7.10, Top Glove inched up one sen to RM8.71, Hartalega was 28 sen higher at RM17.60 and Tenaga Nasional was up three sen to RM10.02.

Main market debutant MR.D.I.Y, which rose one sen to RM1.61 after five minutes of trading, is the most active stock at the opening followed by Advanced Synegy which added 2.5 sen to 19 sen.

On gainers, the technology and healthcare stocks recorded the best performance as it dominated the leading counters.

On the index board, the FBM Emas Index rose 23.13 points to 10,850.36, the FBMT 100 Index improved 16.76 points to 10,648.39 and the FBM Emas Shariah Index added 34.38 points to 12,988.49.

The FBM 70 advanced 42.72 points to 14,301.06 and the FBM ACE soared 60.37 points to 10,667.14.

The Financial Services Index appreciated 3.26 points to 12,362.42, the Industrial Products and Services Index edged up 0.04 of-a-point to 144.40 and the Plantation Index was 4.49 points higher at 6,859.49.-Bernama


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