Bursa Malaysia ended the morning session on a stronger note as positive sentiment continued on the local bourse, supported by gains in utilities and consumer products and services shares.
At 3.40pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 0.24% to 1,533.63 from its close of 1,529.79 at the end of Wednesday.
The index opened 1.26 points higher at 1,531.05 and traded in a narrow range of 1,529.71 to 1,533.08 throughout the session.
However, broader market sentiment turned slightly bearish with losers outnumbering gainers 418 to 402, while 458 counters were unchanged, 1,238 were untraded and seven were suspended.
Total trading volume stood at 1.92 billion units worth RM1.05 billion.
Malacca Securities, in its research, said that market confidence was driven by the announcement by Prime Minister Datuk Seri Anwar Ibrahim to lower the retail price of RON95 to RM1.99 per litre starting end-September, as well as the RM100 cash handout.
This move led to stronger market performance today.
The cash handout is also expected to benefit the consumer sector, with stocks such as EcoShop and 99 SpeedMart recording a breakout following the announcement.
He added that the focus on the construction and utilities sectors was supported by continued growth in data centre development. In addition, we are also positive on real estate investment trusts (REITs), given the potential for a cut in the Overnight Policy Rate (OPR) by Bank Negara Malaysia and its defensive nature. – Bernama
