Bursa starts 2020 on firmer footing, Public Bank gains

KUALA LUMPUR: Bursa Malaysia chalked up modest gains early Thursday, the first trading day of 2020, after the drubbing on Tuesday, with the FBM KLCI’s gains underpinned by Public Bank and KL Kepong.

At 9.16am, the KLCI was up 6.49 points or 0.41% to 1,595.25. Turnover was 238.28 million shares valued at RM118.07mil. There were 244 gainers, 108 losers and 242 counters unchanged.

Foreign funds turned net sellers at -RM196.2mil on Tuesday, the last trading day of 2019, while local institutions stepped in and were net buyers at RM148.8mil and retail investors at RM47.3mil.

Meanwhile, Bloomberg reported stocks in Asia rose modestly and US equity futures nudged higher on Thursday as investors assessed the latest policy move by China’s central bank and awaited data on the country’s manufacturing sector.

Activity is picking up as most global markets reopen from holiday closures, though Japanese equities remain shut for the remainder of this week.

The yuan showed little reaction after the People’s Bank of China said it will increase the supply of cheap funding to banks, a move of policy support in line with market expectations. Australia’s main stock index and South Korean shares advanced along with Chinese equity futures, while oil advanced.

On the ringgit, Stephen Innes, chief Asia market strategist at AXITrader said optimism that a trade deal will be signed continues soon continues to resonate with Ringgit traders and so will the economic data bottoming in China’s economy.

“And an added plus is the PBoC’s stimulatory efforts which are likely to boost growth. Given Malaysia close trade ties with China, this should play ours favorably for the Ringgit.

“Still, the ringgit remains very much connected at the hip to the Yuan so we could expect another favourable move on the run-up to the trade deal eventually getting signed on Jan 15,” Innes said.

KL Kepong rose the most, up 26 sen to RM25.06, Public Bank 18 sen to RM19.62 and Petronas Gas 16 sen to RM16.78.

Allianz added 14 sen to RM16.42, Bright Packaging surged 10.5 sen to 49 sen, Heineken eight sen to RM27.20 while PPHB and CBIP added seven sen each to RM1.15 and RM1.17.

Carlsberg fell 22 sen to RM29, NHFatt 13 sen to RM2.56, Hartalega seven sen to RM5.41 and SP Setia five sen to RM1.55. Tenaga lost four sen to RM13.22.

Source: TheStar