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KUALA LUMPUR (Nov 5): FBM KLCI closed 36.88 points or 2.52% higher at 1,501.49, while Bursa Malaysia’s small-cap (small-cap) company and technology stock indices rose to a greater extent as investors speculated on the outcome of the US presidential election and as they looked ahead to the presentation of Malaysia’s Budget for 2021 tomorrow. Today, there were more than 1,000 winners throughout Bursa.
At 5pm today, the KLCI closed at its intraday high while the Bursa Technology Index finished 5.36% to become the largest percentage gain among the stock indices. The small-cap index ended up 4.01%.
Bursa saw 6.92 billion securities worth RM3.89 billion traded on the exchange. There were 1,096 winners versus 204 declines as global stock markets rallied before a conclusive US presidential election result.
Stocks and currencies in emerging markets in Asia were reported to have risen Thursday as Democrat Joe Biden beat Republican rival Donald Trump and was a surprising distance from a nail-biting US presidential election.
It was reported that the Democratic candidate is likely to be less combative in trade policy and in relations with China, the region’s growth engine, and investors hope he can clear the way for a stronger recovery in Asia from the crisis. of the coronavirus.
“Biden is a seasoned politician and he will revert the United States to a trajectory of more conventional foreign policies and geopolitical maneuvers, which is a good thing for China and emerging economies in general.” Reuters quoted Mahesh Sethuraman, head of global sales operations at Saxo Capital Markets, Singapore.
In Malaysia, MIDF Amanah Investment Bank Bhd’s head of research Imran Yassin Yusof told theedgemarkets.com today that “investor sentiment has improved in the face of a possible Biden win.”
Imran said a Biden victory is expected to reduce market uncertainties, as Biden is likely to be less confrontational on global trade issues.
Meanwhile, the Malaysia Budget for 2021 is also a crucial highlight in this eventful week that also saw Bank Negara Malaysia holding the Nightly Policy Rate at 1.75% on Tuesday (Nov 3).
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that the 2021 Budget is not the usual scheme as announced in previous years because the Budget this time involves a combination of solutions to support the livelihoods of citizens and the economic growth of the country while fighting COVID-19. pandemic.
Harian Metro quoted Tengku Zafrul as saying in an interview that Budget 2021, which will be presented by him in Parliament at 4pm tomorrow (November 6), will have to strike a balance between supporting people’s livelihoods. and the economic growth of the country.
Today, across Bursa, the top winners were semiconductor makers Malaysia Pacific Industries Bhd (MPI) and Unisem (M) Bhd after their share prices rose to record highs of 24.28 and 6.16. RM respectively.
Both components of the Bursa Technology Index trimmed gains when markets closed. At 5pm, the leading earnings MPI ended at RM24.10, while Unisem ended at RM6.11, as investors took their cue from the performance of US stocks overnight.
Reuters reported that US growth stocks, which currently comprise a large chunk of names in areas such as technology, rose 4.31% as investors expected them to outperform value stocks as have done in the last few months.
The security names, which closed unchanged, were reported to be mostly made up of cyclical stocks like banks and energy.
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