Promising economic outlook, 1Q GDP data lift Bursa Malaysia higher

Promising economic outlook, 1Q GDP data lift Bursa Malaysia higher
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KUALA LUMPUR (May 13): Bursa Malaysia ended the week in positive territory, with the barometer index rising 0.36%, as a promising economic outlook on the back of a 5% economic growth in the first quarter lifted market sentiments, an analyst said.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 5.61 points to 1,544.41 from Thursday’s close of 1,538.8.

The benchmark index, which opened 7.18 points higher at 1,545.98, moved steadily throughout the day between 1,541.15 and 1,551.33.

On the broader market, gainers outnumbered decliners 658 to 317, while 402 counters were unchanged, 866 untraded and 19 others suspended.

Total turnover narrowed to 3.17 billion units worth RM2.51 billion from 3.61 billion units worth RM2.51 billion on Thursday.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the FBM KLCI rebounded from Thursday's volatile session as the key index performance was boosted by the stronger-than-expected gross domestic product (GDP) data for the first quarter of 2022 (1Q22).

Earlier, Bank Negara Malaysia (BNM) announced that Malaysia’s economy had rebounded in 1Q22, registering a 5% growth versus a contraction of 0.5% in 1Q21.

Governor Tan Sri Nor Shamsiah Mohd Yunus said the domestic economy is expected to improve further this year, with growth projected to be between 5.3% and 6.3% in 2022.

"With Malaysia having entered into the transition to endemic phase this month, we may expect further improvements in GDP growth in the subsequent quarters ahead," Leong told Bernama.

Among the heavyweight counters, Malayan Banking Bhd eased 11 sen to RM8.96, Public Bank Bhd lost 10 sen to RM4.53, IHH Healthcare Bhd and CIMB Group Holdings Bhd inched down one sen to RM6.44 and RM5.04 respectively, while Petronas Chemicals Group Bhd gained 12 sen to RM9.99.

Of the active stocks, Serba Dinamik Holdings Bhd added 3.5 sen to 12 sen, MNC Wireless Bhd, DGB Asia Bhd, and Techna-X Bhd all remained unchanged at two sen, two sen, and 11.5 sen respectively, while KNM Group Bhd gained two sen to 17.5 sen, and Dagang NeXchange Bhd advanced seven sen to RM1.

On the index board, the FBM ACE improved 112.85 points to 5,342.63, FBM Emas Index advanced 57.76 points to 11,010.8, FBMT 100 Index added 46.78 points to 10,687.26, FBM Emas Shariah Index ticked up 166.63 points to 11,468.41, and the FBM 70 rose 89.77 points to 13,056.61.

Sector-wise, the Financial Services Index slid 167.11 points to 16,534.37, while the Industrial Products and Services Index was 3.32 points higher at 196.79, and the Plantation Index climbed 157.39 points to 8,179.28.

Main Market volume narrowed to 2.12 billion shares worth RM2.32 billion from 2.45 billion shares worth RM2.29 billion on Thursday.

Warrants turnover reduced to 305.24 million units valued at RM58.76 million versus 345.22 million units valued at RM68.47 million on Thursday.

ACE Market volume declined to 736.17 million units worth RM132.24 million from 820.02 million units worth RM149.96 million previously.

Consumer products and services counters accounted for 285.4 million shares traded on the Main Market, industrial products and services (303.9 million), construction (107.26 million), technology (206.8 million), SPAC (nil), financial services (67.77 million), property (158.99 million), plantation (73.78 million), REITs (12.49 million), closed/fund (14,000), energy (754.61 million), healthcare (62.22 million), telecommunications and media (18.01 million), transportation and logistics (49.05 million), and utilities (22.47 million).

Bursa Malaysia and its subsidiaries will be closed on Monday, May 16 for a replacement holiday in conjunction with the Wesak Day celebration and will resume its operations on Tuesday, May 17.