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KUALA LUMPUR (December 11): The FBM KLCI closed the day 30.19 points higher at 1,684.58, 1.83% more than the close of the previous day, driven by a rebound in shares related to services banking and sentiment fueled by vaccine news.
Leading the rally was Public Bank Bhd, which recently announced a four-for-one bond issue. The main winner on the stock market today, closed 8.42% or RM1.70 higher at RM21.90.
Other financial stocks that posted gains were Hong Leong Financial Group Bhd, Hong Leong Bank Bhd, Malayan Banking Bhd, AMMB Holdings Bhd (AmBank Group), BIMB Holdings Bhd, AEON Credit Service (M) Bhd, CIMB Group Holdings Bhd and LPI Capital Bhd and Allianz Malaysia Bhd.
This caused the financial services index to rise 727.09 points to 16,046.13 points.
Overall, though, the losers still outperformed the winners on today’s stock market, with 690 in red versus 626 in green, while 433 counters were unchanged, after 10.03 billion shares were traded, valued. at RM6.19 billion.
Gloves stocks, meanwhile, continued to dominate the list of top losers amid the upward shift in thematic game, with Hartalega Holdings Bhd topping the list after falling 64 sen or 4.46% to RM13.72. Also in the red were Kossan Rubber Industries Bhd (down 43 sen or 7.39% to RM5.39) and Supermax Corp Bhd (down 21 sen or 2.7% to RM7.56).
The asset list, on the other hand, was peppered with oil and gas counters, amid a news stream that oil prices have surpassed $ 50 a barrel. This appeared to have sparked strong commercial interest in counters such as Bumi Armada Bhd, Sapura Energy Bhd, KNM Group Bhd and Hibiscus Petroleum Bhd.
MIDF Research Director Imran Yassin Md Yusof told theedgemarkets.com that the rally was centered on optimism about an economic recovery.
“Bank stocks led the recovery and this was expected given that banks will be a direct beneficiary in a recovering economy,” he said.
However, he believes that the market was slightly up and could lose steam next week.
“Our point of view is based on the fact that the big price changes come from comparatively low volumes. Also, it seems that our market was the exception today, as the regional market seemed to be mixed, despite the positive development regarding to the vaccine as the US FDA (Food and Drug Administration) recommended approval of Pfizer’s Covid-19 vaccine for emergency use.
Also, other less positive news such as [a delay in] The US stimulus talks and Brexit could play a role, “he said.
South Korea’s KOSPI Index gained 0.86% to close at 2,770.06 points today, while Hong Kong’s Hang Seng Index rose 0.38% to 26,510.9 points. Philippine shares also rose 1.28% to 7,246.16 points as, according to Reuters, the country’s congress approved the 2021 budget that aims to boost its pandemic-hit economy.
The Japanese, Australian and Chinese markets, however, struggled to make a profit. Japan’s Nikkei 225 fell 0.39% to 26,652.52 points, while Australia’s All Ordinaries Index fell 0.44% to 6,886.37 points; the Shanghai Composite Index lost 0.77% to 3,347.19 points.
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