Banks nudge KLCI higher, Asian markets advance

KUALA LUMPUR: Banks underpinned Bursa Malaysia’s advance early Thursday, in line with the firmer Asian markets after the US Federal Reserve cut interest rates by 25 basis points but slower factory activity in China could cap gains.

At 9.26am, the FBM KLCII was up 2.88 points or 0.18% to 1,582.88. Turnover was 375.22 million shares valued at RM182.27mil. There were 216 gainers, 134 losers and 249 counters unchanged.

Asian shares rose and US stock futures edged higher after the US Federal Reserve cut interest rates as expected to keep economic expansion on track.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2%. Japan’s Nikkei stock index rose 0.41%, but Australian shares fell 0.24%, Reuters reported.

However, factory activity in China shrank for the sixth straight month in October, official data showed on Thursday, pointing to further pressure on its manufacturers as they grapple with the weakest economic growth in nearly 30 years.

The official Purchasing Managers’ Index (PMI) was at 49.3 in October, dipping from 49.8 in September, the survey from the statistics bureau showed. The 50-point mark separates expansion from contraction on a monthly basis, Reuters added.

At Bursa on Wednesday, foreign funds turned net seller at RM18.2mil while local institutions were net sellers also at RM8mil. Local retail investors were net buyers at RM26.2mil.

Hong Leong Bank rose 16 sen to RM17.18, Public Bank gained eight sen to RM19.48 and Maybank gained six sen to RM8.53.

KL Kepong climbed 20 sen to RM21.72, riding on the recovery in crude palm oil prices. However, PPB Group lost 28 sen to RM18 on mild profit taking.

KESM rose 10 sen to RM8.10 and Mi eight sen to RM2.35. MPI fell 10 sen to RM10.72 and Pentamaster three sen to RM4.57.

Toyo Ink gained 8.5 sen to 83 sen and MY EG six sen to RM1.12.

Mudajaya extended its gains, climbing four sen to 38 sen with 27.3 million shares done.

Source: TheStar