KUALA LUMPUR: Bursa Malaysia capped the week on a strong note as trading value surged to RM5bil, the highest since May 31, 2016, powered by funds buying of banks, Axiata and Petronas Chemicals after a positive outlook from Credit Suisse Research.
At 5pm, the FBM KLCI was up 8.06 points or 0.46% to 1,745.20 – about the highest since May 2016 but off the day’s best due to the retreat among the key Asian markets.
Trading volume on Bursa was 4.98 billion shares – a surge from the average three billion over units done each. Trading value was RM5.03bil, reflecting the better quality of buying. Advancers beat decliners 591 to 368 while 359 counters were unchanged.
Credit-Suisse Research believes the 45-month 34% US dollar underperformance of Malaysian equities (20% in local currency terms) was warranted but has now reached an end game. In a recent research report, it said it had now turned constructive on Malaysia.
Key Asian markets retreated. China’s main stock indexes fell on Friday, posting their worst day since last December, as investors await fresh evidence of a sustainable recovery in the world’s second-largest economy.
Meanwhile, on the currency front, the pound sterling rose for the third day running against the dollar on Friday for the first time since mid-January, drawing confidence from signs some at the Bank of England may be leaning toward a rise in interest rates to support the currency.
The ringgit rose 0.06% against the US dollar to 4.4355 from 4.4383. However, the local unit fell against the pound, sliding 1.17% to 5.5042 from 5.4403, weakened 0.26% against the Singapore dollar to 3.1676 from 3.1594 and lost 0.67% against the Euro to 4.7857 from 4.7539.
Finance and bank stocks were the top gainers. Public Bank rose 30 sen to RM20.18 and pushed the KLCI up 1.98 points, CIMB added six sen to RM5.65 and Maybank five sen higher at RM8.90 while AmBank gained two sen to RM4.87 and RHB Bank edged up one sen to RM5.26.
