Bursa soars 1.4% at close in sync with regional peers

Bursa Malaysia concluded on a positive note on Monday (July 3), primarily because investors were looking for good deals in the banking sector after the sell-off that occurred on Friday. This was in line with the optimistic performance seen in other markets in the region.

At 5 o'clock in the evening, there was a significant increase in the FTSE Bursa Malaysia KLCI (FBM KLCI). It rose by 19.21 points, which is equivalent to a 1.4% surge, reaching a new level of 1,395.89. This was a notable improvement compared to the previous Friday's closing value of 1,376.68.

The primary benchmark started off with an uplifting gain of 2.71 points at 1,379.39 during the start of the week. It then fluctuated between 1,379.31 and 1,397.37 for the remainder of the session.

The overall market also showed a positive trend, with more stocks experiencing gains than losses. The number of stocks that remained unchanged was 420, while 982 stocks were not traded and 40 were suspended.

The number of items traded decreased to 2.61 billion, valued at RM1.50 billion, compared to 2.65 billion items worth RM2.03 billion on the previous Friday.

According to Thong Pak Leng, the vice-president of equity research at Rakuten Trade Sdn Bhd, the major indexes in the region saw an increase due to the drop in US inflation. This drop has led to optimism that the US Federal Reserve will take a more aggressive approach to monetary policy.

Furthermore, statistics indicating a favorable change in attitude towards the Japanese economy drove the Nikkei index to its highest point in 33 years.

“In Hong Kong, stock prices experienced a significant surge due to optimistic expectations of China implementing measures to boost economic growth and unemployment rates," he informed Bernama.

In terms of specific regions, the Hang Seng Index in Hong Kong experienced a 2.06% increase, reaching a value of 19,306.59. Likewise, China's SSE Composite Index saw a rise of 1.31% to reach 3,243.98, while the Shenzhen Index recorded a modest growth of 0.59% and reached 11,091.56.

In terms of the local situation, Thong mentioned that due to an improvement in worldwide market sentiment, the benchmark index continued to rise.

After surpassing the level of 1,390 resistance, it is our expectation that the FBM KLCI will make an attempt to reach the 1,400 mark again during this week.

"However, we recommend investors to exercise caution in anticipation of the upcoming Bank Negara Malaysia Monetary Policy Committee gathering, set to take place this Wednesday and Thursday. Despite our belief that the overnight policy rate will be unchanged, it is prudent to remain vigilant."

He mentioned that in technical terms, the upcoming barrier is anticipated to be at 1,415, whereas the level of support continues to stand at 1,373.

In the group of dominant stocks, Malayan Banking Bhd increased by 12 sen to reach RM8.75, Public Bank Bhd gained nine sen to reach RM3.94, CIMB Group Holdings Bhd improved by 10 sen to reach RM5.16, Tenaga Nasional Bhd slightly increased by five sen to reach RM9.10, but IHH Healthcare Bhd decreased by one sen to reach RM5.88.

Among the stocks, RGB International Bhd rose by 2.5 cents to 36 cents, TWL Holdings Bhd experienced a slight increase of 0.5 cents to 3.5 cents, while Sarawak Consolidated Industries Bhd remained steady at 47 cents. Widad Group Bhd stood at 42 cents and BTM Resources Bhd at nine cents, with no significant changes.

In the stock market, the FBM Emas Index rose by 131.21 points to reach 10,272.55. The FBMT 100 Index also experienced a significant increase of 130.30 points, bringing it to 9,974.30. Similarly, the FBM Emas Shariah Index saw a jump of 120.01 points, landing at 10,534.88. Additionally, the FBM ACE Index strengthened by 47.56 points, reaching 5,115.58. Lastly, the FBM 70 Index perked up by a substantial 147.05 points, reaching 13,531.63.

Regarding specific sectors, the Financial Services Index saw an increase of 185.21 points, reaching a total of 15,518.08. The Industrial Products and Services Index also experienced a gain of 1.98 points, reaching 158.90. Similarly, the Energy Index displayed a recovery of 14.05 points, totaling 788.14. Lastly, the Plantation Index accumulated 128.83 points, reaching a final total of 6,827.48.

The trading activity in the Main Market experienced a decrease, with a total of 1.80 billion shares traded, amounting to a value of RM1.26 billion. This is a decline from the previous Friday, where 1.93 billion shares were traded, valued at RM1.82 billion.

The number of warrants traded increased to 333.22 million units, valued at RM60.90 million, compared to the previous amount of 226.52 million units, worth RM39.82 million.

The trading activity on the ACE Market experienced a slight decline, with a lower volume of 483.43 million shares being traded. These shares were valued at RM179.48 million, compared to the previous Friday's trading where 494.11 million shares were traded, valued at RM173.01 million.

The trading volume on the Main Market was as follows: consumer products and services - 349.89 million shares, industrial products and services - 606.59 million shares, construction - 46.56 million shares, technology - 135.22 million shares, SPAC - none, financial services - 58.86 million shares, property - 238.76 million shares, plantation - 47.67 million shares, REITs - 6.30 million shares, closed/fund - 88,200 shares, energy - 129.90 million shares, healthcare - 77.49 million shares, telecommunications and media - 26.81 million shares, transportation and logistic - 22.54 million shares, and utilities - 49.55 million shares.