KLCI edges higher on Permai stimulus package, firmer regional markets

KLCI edges higher on Permai stimulus package, firmer regional markets
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KUALA LUMPUR (Jan 19): The main index at Bursa Malaysia edged higher on Tuesday on the back of the government’s RM15 billion Perlindungan Ekonomi dan Rakyat Malaysia (Permai) assistance package, as well as firmer regional markets.

At 9.05am, the FBM KLCI rose 3.17 points to 1,612.69.

The early gainers included Milux Corp Bhd, PMB Technology Bhd, Kobay Technology Bhd, Malaysian Pacific Industries Bhd, Far East Corp Bhd, Tasco Bhd, ViTrox Corp Bhd and Mesiniaga Bhd.

Bloomberg said Asian equities pushed higher on Tuesday and bond yields ticked up as investors awaited comments from Treasury Secretary nominee Janet Yellen on US stimulus and the dollar.

Rakuten Trade said Wall Street was closed yesterday but Biden’s inauguration on Wednesday may spur some buying interests going forward.

The research house said that already the Dow Jones Industrial Average futures is trending at positive levels.

“As such, we reckon regional markets to perform better today after several days of lacklustre performance.

“On the local front, we believe the FBM KLCI to rebound after the decline due to expectations of a cut in the OPR (overnight policy rate) when Bank Negara [Malaysia] meets this Wednesday.

“We expect the OPR to be maintained as the impact is rather muted at this juncture.

“Meanwhile, we see [Prime Minister] Tan Sri Muhyiddin Yassin’s additional aid for the people’s welfare is positive, especially the tourism-related segments and the RM100 million for private hospitals for Covid-19 treatment but the discount to certain business sectors may have marginal negative effects on Tenaga Nasional Bhd (TNB).

“Nonetheless, we expect the index to retest the 1,620 level today,” it said.