KUALA LUMPUR (July 5): Bursa Malaysia opened modestly higher on Monday, indicating that market confidence is improving as five Malaysian states enter Phase 2 of the National Recovery Plan (NRP). The benchmark FBM KLCI has increased 0.24 of a point to 1,533.59 at 9:05 a.m., up from 1,533.35 last Friday.
At 1,534.04, the market bellwether opened 0.69 of a point higher.
Gainers outnumbered losers 192 to 169 on the broader market, with 299 counters unchanged, 1,513 untraded, and nine others suspended.
The company sold 286.43 million units worth RM124.17 billion.
The National Security Council said on Saturday that Kelantan, Pahang, Perak, Terengganu, and Perlis have met the NRP’s three indicators and would enter Phase 2 today.
These five states are being rewarded, according to Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob and Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, for reducing the number of cases, improving ICU capacity, and increasing the percentage of their populations vaccinated in accordance with set thresholds under the NRP.
The upside for the KLCI, however, could be limited, according to Malacca Securities, since investors remain wary as daily Covid-19 instances continue above 6,000.
In the meantime, investors may want to keep an eye on Bank Negara Malaysia’s (BNM) interest rate decision this week in order to position themselves in the stock market.
“Crude palm oil (CPO) prices have increased for the fourth day in a row. Because Brent oil prices were hovering around US$76 (about RM315.93), the oil and gas (O&G) industry may be targeted “Today, Malacca Securities released a research report.
Furthermore, the firm believes that the technology sector should follow the Nasdaq’s upward trend.
“Given that we are still in lockdown mode, with five states moving into Phase 2 of the NRP, we may be on the lookout for plastic packaging stockpiles,” the report said.
Petronas Chemicals Group Bhd (PetChem) gained two sen to RM8.09, Tenaga Nasional Bhd (TNB) gained three sen to RM9.76, and Press Metal Aluminium Holdings Bhd gained four sen to RM4.82, while Malayan Banking Bhd (Maybank) and IHH Healthcare Bhd were unchanged at RM8.11 and RM5.61, respectively. Public Bank Bhd was down one sen to RM4.10, while CIMB Group Holdings Bhd was down two sen to RM4.62.
Serba Dinamik Holdings Bhd rose three sen to 41.5 sen, NWP Holdings Bhd up one sen to 22.5 sen, and Pasukhas Group Bhd rose 3.5 sen to 32 sen, while Sarawak Consolidated Industries Bhd and KPower Bhd each rose 4.5 sen to 85.5 sen and 96.5 sen.
The FBM Emas Index rose 4.52 points to 11,165.43, the FBMT 100 Index rose 2.55 points to 10,875.97, and the FBM Emas Shariah Index rose 12.47 points to 12,188.58 on the index board.
The FBM ACE fell 0.66 point to 7,210.55, but the FBM 70 climbed 6.52 points to 14,456.85.
The Financial Services Index fell 11.38 points to 15,116.07, while the Industrial Products and Services Index up 0.55 point to 187.48, and the Plantation Index rose 0.82 point to 6,416.64./n
