Malaysian shares rise in early trade as banking stocks advance
The FBM KLCI gained 0.69 per cent, although declining stocks narrowly outnumbered advances across the broader market.
Malaysia's benchmark FBM KLCI reached 1,627.72 at 9.10 am on Thursday, gaining 11.16 points, equivalent to 0.69 per cent. Banking heavyweights advanced ahead of Bank Negara Malaysia's Overnight Policy Rate decision, scheduled for later that afternoon.
The index had started trading at 1,623.28, an opening gain of 6.72 points from Wednesday's 1,616.56 close. Across the wider market, 241 counters declined and 232 advanced, with another 268 unchanged. Trading volume totalled 263.87 million units, valued at RM148.93 million.
Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, said cheaper crude and better external sentiment could encourage buying after profit-taking in the previous session. He attributed Wall Street's sharp overnight gains to significant Democratic gains in the US midterm elections, which he said had reduced some economic and geopolitical uncertainty.
Thong said Brent crude was below US$95 per barrel amid hopes that tensions in West Asia would ease. He expected the FBM KLCI to trade between 1,615 and 1,630 during the session.
Of the benchmark's 30 constituents, 24 advanced, one declined and five were unchanged. Maybank added 10 sen to RM10.00, while CIMB increased 11 sen to RM7.02. Public Bank traded at RM4.81 after a four-sen rise. IHH Healthcare gained 10 sen to RM7.88, while Tenaga Nasional held at RM13.14.
Among actively traded shares, AirAsia climbed eight sen to 53.5 sen and Capital A added three sen to 26 sen. Nestle topped the gainers with a RM1.00 increase to RM94.50, while MPI fell RM1.20 to RM39.42.
