KLCI jumps 1.5% on bargain hunting, hopes of political stability and virus control

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KUALA LUMPUR (Jan 13): The FBM KLCI rose 1.5% or 24.65 points to 1,636.69, lifted by bargain hunting, as measures seen as containing the coronavirus pandemic as well as ensuring political stability were put in place in the form of the second round of the movement control order (MCO 2.0) as well as the proclamation of the state of emergency.

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The FBM KLCI closed near to its intraday high of 1637.31, mainly driven by the banking index, with Public Bank Bhd leading charge.

Public Investment Bank Bhd head of research Ching Weng Jin told theedgemarkets.com, the market may progressively go higher on the anticipation of the vaccine and improved economy.

“I supposed investors realised that the state of emergency and the MCO 2.0 are not as bad as they thought, thus, they returned to the market again,” he said.

According to him, the declaration of emergency has lessened the political uncertainties; the MCO 2.0 is not as strict as the previous one, in which business activities are allowed to operate.

Ching also opined that foreign investors which were the net buyer last Friday may continue to invest in Malaysia as the political stability returned.
Across Bursa Malaysia today, the sentiment was positive with gainers led losers by 950 to 348, while 308 counters traded unchanged.

Meanwhile, 7.12 billion securities were traded for RM5.11 billion, compared with 8.41 billion securities worth RM5.76 billion yesterday.

Technology and banking stocks were among the top gainers today.

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The technology index advanced 3.71% to 72.31, while the financial services index also climbed 3.57% to 15065.74.

Public Bank, which was the top gainer on the local bourse, was also the key driver for the benchmark index. The counter soared RM1.32 or 6.57% to RM21.40.

Other banking counters that saw bargain hunting included CIMB Group Holdings Bhd (up 15 sen or 3.83% to RM4.07), Malayan Banking Bhd (up 30 sen or 3.75% to RM8.30).

Meanwhile, Malaysian Pacific Industries Bhd surged 82 sen or 3.05% to RM27.68, making it as the second top gainer. KESM Industries Bhd (up 58 sen or 3.86% to RM15.60) and ViTrox Corp Bhd (up 54 sen or 3.75% to RM14.94) were also among the top gainers.

The top loser today was led by Nestle (M) Bhd which shed 60 sen or 0.43% to RM138.90.

Glove counters also saw some profit taking, with Hartalega Holdings Bhd falling 14 sen or 1.07% to RM13; Top Glove Corp Bhd down 5 sen or 0.75% to RM6.63; while Supermax Corp Bhd declined by 19 sen or 2.6% to RM7.11.

Most regional bourses ended higher today.

Reuters reported, Asian stocks rose today, tracking modest Wall Street gains, as expectations that a vaccine will eventually win the battle against the coronavirus fuelled recovery hopes, while tight supply expectations pushed oil prices to a one-year high.

Nikkei’s 225 closed 1.04% higher at 28456.59; Korea’s Kospi ended 0.71% higher at 3148.29. Hong Kong Hang Seng, however, closed 0.15% lower at 28235.60.- The Edge Market

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