Bursa Malaysia gains bullish momentum after China stimulus

KUALA LUMPUR: Strong support from buyers on Wall Street markets coupled with a series of stimulus packages aimed at supporting the Chinese economy are supporting domestic market gains.

Following a strong performance in the previous session, the FBM KLCI index rose another 3.69 points to 1,674.06 points at the open on Wednesday, confirming the positive momentum returning to the market.

Malacca Securities Research predicts that positive sentiment in China should lead to a rebound in overall commodity demand.

“Growth potential is likely in commodity-linked sectors such as oil and gas, plantations and construction materials,” the research firm said in a note.

He added that amid the strong ringgit, there are growth opportunities in the construction, real estate, consumer goods and manufacturing sectors.

Tenaga Nasional shares gained eight sen to RM15.12, having edged higher in early trading, Telekom Malaysia shares gained nine sen to RM6.70 and YTL Power shares gained five sen to RM3.98.

PETRONAS Dagangan rose eight sen to RM18.36, Sunway gained four sen to RM4.34 and Sime Darby rose three sen to RM2.35.

The most active stocks in the market were Globetronics, up six sen to 77 sen, Artroniq, up one sen to 9.5 sen, and VS Industry, up three sen to RM1.14.