FBM KLCI ends higher as risk appetite returns
KUALA LUMPUR: Bursa Malaysia finished at its intraday high for the second straight session yesterday, driven by global optimism and the latest round of government fiscal aid that led investors to be back in the local market.
At 5pm, the FBM KLCI gained 10.53 points, or 0.69%, to close at an intraday high of 1,540.32, compared to Wednesday's close of 1,529.79.
The index opened 1.26 points higher at 1,531.05 and moved between 1,529.71 and 1,540.32 throughout the trading session.
Gainers led losers in the broader market 502 to 474, with 496 counters unchanged, 1,044 untraded and seven suspended.
Turnover, however, slipped to 2.97 billion shares worth RM2.3bil from 3.27 billion shares worth RM2.26bil on Wednesday.
SPI Asset Management managing partner Stephen Innes said the FBM KLCI traded firmer, buoyed by hopes that the worst of the tariff storm may be behind as the US-Japan deal, inked at 15%, has the market betting that other trading partners, including Malaysia, could secure similar outcomes, potentially keeping tariffs below the 20% mark.
'That shift in expectations is stoking risk appetite across Asia. Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim's announcement of RM100 cash handouts for all adult Malaysians and targeted fuel price relief adds a dose of local stimulus, reinforcing the bid on domestic equities.
'Boosted by global optimism and the government fiscal aid, investors are back in force,' he told Bernama.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said a sharp surge in the final hour of trading lifted the composite index, suggesting renewed investor confidence and short-term accumulation ahead of key global macroeconomic events.
'Market sentiment was buoyed by the government's latest fiscal stimulus announcements, which provided a supportive backdrop for risk assets.
'Notably, foreign funds turned net buyers for the day, signalling a shift in sentiment likely driven by the perceived credibility and market-friendly orientation of the new fiscal measures,' he said.
Mohd Sedek elaborated that among FBM KLCI constituents, petrochemical stocks led the gains, reflecting sector-specific optimism amid improved global demand signals and positive developments in trade negotiations.
The Industrial Products and Services Index extended its winning streak, underpinned by expectations tied to the recent US-Japan trade agreement, which was viewed by markets as a favourable benchmark for regional trade realignments.
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