Bursa Malaysia Opens Firmer: Nestle, Maybank Lead Gains

Quick Answer: Bursa Malaysia opened higher on Thursday, with the FBM KLCI rising 11.16 points, or 0.69%, to 1,627.72 from Wednesday’s close of 1,616.56. The lift followed Wall Street’s gains and lower Brent crude, which slipped below US$95 per barrel. For shareholders, banking heavyweights including Maybank and CIMB firmed ahead of Bank Negara Malaysia’s rate decision.

The FBM KLCI opened 6.72 points higher at 1,623.28 before climbing further in the 9.10 am reading. Improving global sentiment and easing geopolitical concerns drove the move, according to Bernama.

What Moved Bursa Malaysia Higher This Thursday?

Bursa Malaysia stock market trading screen — Bursa Malaysia opened firmer on improved global sentiment.

Wall Street closed sharply higher after the Democrats made significant gains in the US midterm elections. That eased some economic and geopolitical uncertainty weighing on markets.

Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, said the local bourse could see renewed buying interest after the previous session’s profit-taking. “Back home, we believe the index may see strong buying support today, particularly as crude oil prices have retreated,” he told Bernama.

Brent crude weakened below US$95 per barrel on hopes of easing tensions in West Asia. Thong expects the FBM KLCI to trend within the 1,615 to 1,630 range today.

Why Did Banking Heavyweights Lead Bursa Malaysia’s Early Gains?

Banking heavyweights were all firmer ahead of Bank Negara Malaysia’s Overnight Policy Rate decision, due later in the afternoon. Expectations of an interest rate hike are lending support to the ringgit.

Maybank: up 10 sen to RM10.00
CIMB: up 11 sen to RM7.02
Public Bank: up four sen to RM4.81
IHH Healthcare: up 10 sen to RM7.88
Tenaga Nasional: flat at RM13.14

Among the 30 FBM KLCI constituents, 24 counters traded higher, one lower and five unchanged.

Which Stocks Topped the Bursa Malaysia Gainers and Losers?

Nestle led the top gainers, rising RM1.00 to RM94.50. Hong Leong Bank gained 26 sen to RM21.50, while Allianz rose 20 sen to RM19.72.

Hong Leong Financial: up 18 sen to RM17.64
PPB: up 14 sen to RM9.00
MPI: down RM1.20 to RM39.42
Vitrox: down 36 sen to RM10.54
Hengyuan Refining: down 32 sen to RM3.30
UWC: down 19 sen to RM7.01
Petronas Chemicals: down 18 sen to RM4.52

In active trade, AirAsia rose eight sen to 53.5 sen and Capital A gained three sen to 26 sen. Dagang Nexchange eased half a sen to 41.5 sen, VS Industry was at 33 sen and MMAG at two sen.

How Did the Bursa Malaysia Index Board and Sectors Perform?

The FBM Emas Index surged 52.26 points to 12,130.24, and the FBM Top 100 Index gained 57.67 points to 11,942.75. The FBM Emas Shariah Index advanced 13.78 points to 12,118.21.

The FBM Mid 70 Index fell 17.14 points to 17,494.11, and the FBM ACE Index declined 15.85 points to 5,404.93.

The Financial Services Index gained 200.40 points to 18,786.71, while the Plantation Index rose 45.79 points to 8,807.67. The Energy Index fell 13.91 points to 814.01, and the Industrial Products and Services Index edged down 0.60 of a point to 177.61.

Losers outnumbered gainers 241 to 232, with 268 counters unchanged, 2,020 untraded and 10 suspended. Turnover stood at 263.87 million units worth RM148.93 million.

What Should Shareholders Monitor Next?

Banking stocks and Tenaga Nasional are worth monitoring around the Bank Negara Malaysia decision. Energy names such as Petronas Chemicals and Hengyuan Refining are worth watching as crude oil prices move.

Investors comparing brokers to track these stocks can review Trading Account Types in Malaysia before placing any trade.

Key Takeaways

The FBM KLCI rose 0.69% to 1,627.72 at 9.10 am on Thursday.
Banking heavyweights firmed ahead of Bank Negara Malaysia’s Overnight Policy Rate decision.
Nestle led the gainers at RM94.50 after rising RM1.00.
Rakuten Trade expects the FBM KLCI to trend within 1,615 to 1,630 today.
Brent crude fell below US$95 per barrel on easing West Asia tensions.

This article is for information only and does not constitute investment advice. Do your own research before making any investment decision.

Frequently Asked Questions

Where did the FBM KLCI open on Thursday?

The FBM KLCI opened 6.72 points higher at 1,623.28. It rose to 1,627.72 at 9.10 am, up 11.16 points or 0.69% from Wednesday’s close of 1,616.56.

Why is Bank Negara Malaysia’s rate decision affecting Maybank and CIMB?

Banking heavyweights firmed ahead of the Overnight Policy Rate decision due later that afternoon. Expectations of an interest rate hike are lending support to the ringgit.

How much did Nestle shares rise?

Nestle rose RM1.00 to RM94.50 and led the top gainers on Bursa Malaysia. Hong Leong Bank gained 26 sen to RM21.50 in the same session.

What trading range did Rakuten Trade expect for the FBM KLCI?

Thong Pak Leng of Rakuten Trade Sdn Bhd expected the FBM KLCI to trend within 1,615 to 1,630 today. He linked the view to lower crude oil prices and improving external sentiment.

Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.