Bursa Malaysia recovered from the losses suffered last week to open higher this morning despite the downgrade of credit rating to the country.
Dealers said the performance shown by the exchange was driven by a positive external environment as well as the return of buying activity when prices were low in the local market.
Bernama reported that at 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index rose 1.09 points to 1,622.94 after opening 2.22 points higher at 1,624.07.
The barometer index, largely soared following an increase by Maybank by 1,313 points. Banking shares gained six sen to RM8.26 with 122,800 shares changing hands.
The market was overall positive with gainers outpacing losers by 423 to 206 while 374 counters were unchanged, 1,130 untraded and 31 others suspended.
Turnover was 965.04 million units worth RM340.5 million.
Fitch Ratings last Friday announced that it had downgraded Malaysia's credit rating from A- 'to' BBB + ', with a better-than-negative outlook to stable.
This decline is the first by a rating agency for a country since the 1997/98 Asian Financial Crisis.
Malacca Securities Sdn Bhd said by monitoring earnings on Wall Street last Friday, followed by high commodity prices for both crude oil and crude palm oil, the increase in the local market seems certain.
“The easing of measures by the Conditional Movement Control Order (PKPB) also encourages economic growth.
"Cheap stocks are expected to rise in the midst of liquidity-driven markets," the research firm said in a note today.
Meanwhile, Rakuten Trade Sdn Bhd said Wall Street had reached a new high on Friday, driven by the expectation of a stimulus package announcement soon with the Dow Jones Industrial Average jumping 249 points again and remaining firmly above the 30,000 level.
"Therefore, we project that regional markets will also respond positively today," he said.
Domestically, Rakuten said the FBM KLCI may recover after stabilizing last Friday.
"With that, we may see the benchmark index test another high level this year at 1,630 today," he said.
Brent crude oil nearly reached US $ 50 a barrel and is currently hovering above US $ 49.
Among heavyweights, Top Glove and IHH Healthcare added one sen each to RM6.66 and RM5.46, respectively, and Hartalega rose six sen to RM14.56.
However, Public Bank declined eight sen to RM18.52 while Tenaga and Petronas Chemicals declined four sen to RM10.90 and RM7.35 respectively.
The hottest stocks, Yong Tai rose 8.5 sen to 45 sen, Sapura Energy and Nexgram rose 13 sen and six sen, respectively, and Hiap Teck added one sen to 42 sen.
On the index board, the FBM Emas Index rose 23.17 points to 11,763.89, the FBMT 100 Index rose 21.18 points to 11,515.14, the FBM Emas Syariah Index added 11.91 points to 13,519.08 while the FBM 70 jumped 80.38 points to 15,329.93.
However, FBM ACE decreased 2.52 points to 10,622.45.
Meanwhile, the Industrial Products and Services Index rose 0.01 points to 173.8, the Plantation Index rose 23.42 points to 7,372.82 and the Financial Services Index gained 41.42 points to 14,558.87.
