(Updated)

KLCI extends winning streak on positive sentiment

KLCI extends winning streak on positive sentiment
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KUALA LUMPUR (Oct 8): Bursa Malaysia extended its winning streak for the fourth day on Friday as positive market sentiment on strong commodity prices and growing optimism over economic recovery lifted the risk appetite for equities and riskier assets, dealers said.

The FBM KLCI ended 2.61 points firmer at 1,563.90 compared with 1,561.29 at Thursday’s close.

The bellwether index, which opened 0.86 of a point better at 1,562.15, fluctuated between 1,558.56 and 1,567.30 throughout the day.

Press Metal Aluminium Holdings Bhd was the biggest winner among the index-linked counters with a 3.22% jump and contributed a substantial 2.754 points to the composite index.

The aluminium smelter’s share soared 19 sen to RM6.09, with 8.16 million shares changing hands, on anticipation that the company might benefit from expected higher global aluminium prices and a hike in smelting capacity following an expansion in the Samalaju project.

On the broader market, gainers led decliners 610 to 452, while 439 counters were unchanged, 768 untraded and 26 others suspended.

Turnover increased to 4.99 billion units worth RM3.34 billion from 4.09 billion units valued at RM2.98 billion on Thursday. 

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the KLCI had surpassed its 1,550 resistance level and the uptrend would likely continue towards the next resistance level of 1,580, followed by the psychological level of 1,600.

“Sentiment in the market was getting better [on firmer commodity prices], plus the rally in regional markets also created better investor sentiment,” he told Bernama, adding that immediate support is located at 1,550, followed by 1,530.

Thong said plantation stocks would remain favourites for time being given the high crude palm oil (CPO) prices.

“Most analysts have not upgraded their CPO forecasts and current CPO prices are much higher than the analysts’ estimates. Therefore, the chances of plantation companies beating analyst forecasts are very high. That is why investors are taking their position to buy now even though analysts have not upgraded them (their stock ratings),” he explained.

The price of CPO futures was expected to set another new high on Friday, with the benchmark palm oil contract for December 2021 trading at RM4,937 per tonne, compared with RM4,872 per tonne recorded at Wednesday’s close. 

Among the heavyweights, Malayan Banking Bhd (Maybank), Public Bank Bhd, Petronas Chemicals Group Bhd (PetChem) and IHH Healthcare Bhd were flat at RM8.05, RM4.08, RM8.68 and RM6.63 respectively, while Tenaga Nasional Bhd (TNB) shed two sen to RM9.71 and CIMB Group Holdings Bhd gained four sen to RM4.90.

Of the actives, SC Estate Builder Bhd trimmed five sen to 11.5 sen, Freight Management Holdings Bhd increased 20 sen to RM1.06, Opcom Holdings Bhd increased 16 sen to RM1.62 and CEKD Bhd advanced 18 sen to 80 sen.

On the index board, the FBM Emas Index was 28.54 points higher at 11,501.76, the FBMT 100 Index gained 27.25 points to 11,158.17, the FBM Emas Shariah Index picked up 31.5 points to 12,639.69, the FBM 70 soared 70.57 points to 15,095.42 and the FBM ACE picked up 3.32 points to 7,140.42.  

Sector-wise, the Financial Services Index increased 13.22 points to 15,212.56. The Industrial Products and Services Index added 1.81 points to 209.46, while the Plantation Index bagged 4.14 points to 6,965.03.

Main Market volume increased to 3.27 billion shares worth RM2.71 billion, compared with 2.63 billion shares valued at RM2.55 billion on Thursday.

Warrant turnover slipped to 448.28 million units worth RM67.58 million against 489.5 million units valued at RM76.37 million the day before.

ACE Market volume expanded to 1.28 billion shares worth RM561.33 million from 964.77 million shares worth RM263.87 million previously.

Consumer products and services counters accounted for 623.71 million shares traded on the Main Market, followed by industrial products and services (835.38 million), construction (11.57 million), technology (280.31 million), SPAC (nil), financial services (53.15 million), property (195.86 million), plantation (51.67 million), real estate investment trust (6.3 million), closed/fund (74,700), energy (553.47 million), healthcare (68.13 million), telecommunications and media (30.83 million), transportation and logistics (446.16 million), and utilities (13.05 million).