How did the KLCI recover from early losses to close higher?

Question

Accepted Answer

KLCI Recovers from Early Losses to Close Higher on Bargain Hunting

The FTSE Bursa Malaysia KLCI (FBM KLCI) recovered from an early dip to close higher, surpassing its previous peak from February 27, 2019. The benchmark index gained 4.25 points, or 0.25 per cent, to settle at 1,715.16 from the previous day's close of 1,710.91. This upward movement was driven by bargain hunting activity, particularly in heavyweight financial services stocks, despite mixed regional sentiment and elevated geopolitical concerns.
Bargain Hunting in Financial Services Stocks

The recovery was significantly influenced by strategic buying in key financial services companies. These included Maybank, which saw a rise of six sen to RM11.10, and Public Bank, which gained eight sen to RM4.75. CIMB and Tenaga Nasional also advanced by 10 sen each, reaching RM8.45 and RM13.92 respectively. This increased interest in financial counters boosted the Financial Services Index, which jumped 220.18 points to 20,704.28.
Market Performance and Turnover Dynamics

The FBM KLCI opened lower at 1,710.35, subsequently reaching an intraday low of 1,701.83 in early trading. However, buying pressure throughout the day led to a consistent rise towards the closing bell. This rally extended for a fifth consecutive session, indicating sustained investor confidence. Overall turnover increased to 3.25 billion units valued at RM3.32 billion, up from the previous day's 3.11 billion units worth RM3.19 billion, reflecting active trading across the market.
Investor Confidence and Foreign Inflows

The persistence of buying interest is seen as a reflection of confidence in Malaysia's earnings potential and its macroeconomic environment. This sentiment has been further bolstered by foreign investors, who recorded net inflows for four consecutive days between January 9 and 14. This pattern suggests that Malaysia is increasingly being viewed as a core investment allocation rather than just a tactical trading opportunity.

Reading history

Hide →

This history is cleared when the page is closed.

How did the KLCI recover from early losses to close higher?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends