Bursa opens higher on stronger oil prices

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KUALA LUMPUR (Oct 5): Bursa Malaysia opened higher on Wednesday morning (Oct 5), supported by stronger oil prices and bargain-hunting activities ahead of the tabling of Budget 2023, which is scheduled for Friday, a dealer said.

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At 9.05am, the benchmark FBM KLCI had improved 6.90 points to 1,416.26 from Tuesday’s close at 1,409.36.

The benchmark index opened 4.31 points better at 1,413.67.

On the broader market, gainers led losers 262 to 60, while 176 counters were unchanged, 1,832 untraded, and six others suspended.

Turnover stood at 226.75 million units worth RM63.55 million.

In a note, Malacca Securities Sdn Bhd said the local bourse may be set for further recovery after witnessing further gains on Tuesday, boosted by selected telecommunications, consumer and banking heavyweights, while foreign funds turned net buyers after 14 sessions of sell-offs.

“We opine that the buying momentum for telecommunications, solar-related and selected consumer stocks is likely to be sustained towards the tabling of Budget 2023.

“Meanwhile, investors may put energy stocks on their radar following the rebound in crude oil prices,” the brokerage said in a statement on Wednesday.

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Brent crude surged to above US$91 per barrel after the American Petroleum Institute reported a surprise draw, while the crude palm oil price hovered above RM3,750 per tonne.

In view of the overnight rally on the Nasdaq, Malacca Securities said the investors may also see follow-through buying interest in technology counters.

As such, it anticipated the resistance levels to be at 1,430 -1,450, while support is set along 1,400 on Wednesday.

At the time of writing, Bursa heavyweights Malayan Banking Bhd (Maybank) had gained two sen to RM8.70 and CIMB Group Holdings Bhd too was two sen higher at RM5.25, Public Bank Bhd added five sen to RM4.32 and Petronas Chemicals Group Bhd increased four sen to RM8.43, while IHH Healthcare Bhd was flat at RM5.85.

Of the actives, MMAG Holdings Bhd bagged two sen to 5.5 sen, ATA IMS Bhd edged up half a sen to 31.5 sen, Hibiscus Petroleum Bhd climbed 4.5 sen to 91.5 sen, while SNS Network Technology Bhd was unchanged at 27 sen and Xidelang Holdings Ltd too was flat at two sen.

On the index board, the FBM Emas Index advanced 49.98 points to 10,100.89, the FBM 70 earned 60.53 points to 12,241.24, and the FBMT 100 Index grew by 48.15 points to 9,850.98. The FBM Emas Shariah Index rose 52.90 points to 10,122.44, and the FBM ACE strengthened 40.86 points to 4,749.86.

Sector-wise, the Energy Index was 12.35 points firmer at 696.87, the Financial Services Index expanded 60.58 points to 16,152.01, the Industrial Products and Services Index edged up 1.05 points to 170.91, and the Plantation Index was 23.91 stronger at 6,461.97.-BERNAMA


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