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KUALA LUMPUR: Bursa Malaysia posted its strongest performance in more than two months on Tuesday with an increase in trading volume and investors piled on banks and leisure stocks as they cut their stakes in glove makers on the positive development of a Covid-19 vaccine.
By 5 p.m., the FBM KLCI was up 50.75 points, or 3.33%, to 1,575.07, the highest level since mid-August. The index opened 2.37 points lower at 1,521.95 this morning.
The 3% gain is the biggest move since it was up 6.85% on March 20. The index has risen 7.77% in the last five days.
Trading volume increased to 12.310 million shares valued at RM8.44bil. There were 747 positive counters versus 609 rejections and 331 unchanged.
Traders said investors were buying expired stocks, such as travel, leisure and banking counters, while ditching those that profited from the Covid-19 pandemic, such as glove makers.
News that the experimental vaccine from drug maker Pfizer and German partner BioNTech was more than 90% effective in preventing Covid-19 had driven Wall Street to a higher shutdown overnight and this saw how the positive news spread to Asian markets.
Banking, travel and leisure and energy stocks were among the biggest gains in Bursa Malaysia.
Public Bank rose RM1.90 to RM17.20, Hong Leong Bank added RM1.48 to RM16.18, Maybank gained 54 sen to RM7.66, and RHB Bank advanced 47 sen to RM4.85.
Genting added 61 sen to RM3.60 and Genting Malaysia advanced 26 sen to RM2.38. Tenaga Nasional rose 94 sen to RM11.20.
AirAsia
Group, AirAsia X (AAX) and Malaysian airports (MAHB) jumped on the news. AirAsia rose 27%, or 14.5 sen to 68 sen, AAX rose 62.5%, or 2.5 sen to 6.5 sen and MAHB rose 20.5%, or 89 sen to RM5, 22.
On the other hand, Hartalega skidded $ 2.52, or 13.83% to $ 15.70, Kossan fell 92 sen, or 12.27% to $ 6.58, Supermax fell 80 sen, or 8.31% to RM8.83, and Top Glove dipped 68 sen, or 8% to $ 7.80 .
On the external front, major Asian markets soared with the vaccine news.
Reuters reported that Japan’s Nikkei stock average reached its best level in nearly three decades. The Nikkei rose 0.26% to close at 24,905.59 points after reaching its highest level since June 1991 during the session.
South Korean shares extended their rally to a seventh straight session on Tuesday, Reuters reported. The benchmark Kospi index closed 5.63 points, or 0.23%, higher at 2,452.83.
Hong Kong’s Hang Seng Index rose 285.31 points, or 1.1%, to 26,301.48.
China’s top-tier CSI300 Index closed 0.6% lower at 4,953.88, after hitting a five-year high in the previous session. The Shanghai Composite Index lost 0.4%.
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