Bursa extends gains to open higher

Bursa extends gains to open higher
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KUALA LUMPUR (Nov 3): Bursa Malaysia extended Tuesday's (Nov 2) gains to open higher on Wednesday, taking its cue from the overnight Wall Street which stretched its rally, powered by gains in the technology and healthcare sectors, dealers said.

At 9.05am, the benchmark FBM KLCI had risen 6.24 points to 1,543.87 from Tuesday's close at 1,537.63.

It opened 5.52 points higher at 1,543.15 on Wednesday.

However, the broader market was slightly negative with losers leading gainers 177 to 159, while 268 counters were unchanged, 1,671 untraded and 19 others suspended.

Turnover amounted to 291.33 million units worth RM111.71 million.

Malacca Securities Sdn Bhd, in a research note, said given the rebound of the KLCI on Tuesday, it is expected that the near-term floor has been found and investors could have digested the proposed one-off Cukai Makmur (prosperity tax) and the contract note stamp duty changes.

"All in all, the negative earnings impact could be lesser than expected, hence bargain-hunting activities have emerged. 

"Also, with the strong broad rally on Wall Street, we opine that the buying interest may spill over to technology stocks on the local front, which could be one of the sweet spots on our local bourse,” it said.

Commodity-wise, the crude palm oil price managed to maintain its trading range of between RM4,800 and RM5,000, while Brent oil was still hovering above US$84 (about RM348.81).

Hence, investors might look out for recovery-themed stocks going into the final two months of 2021 with technology stocks lifted by the strong sentiment on Wall Street, while the overall broad market may be supported by bargain-hunting activities at least in the near term, the research house added.

Among the heavyweights, Malayan Banking Bhd (Maybank) added four sen to RM8.03, Public Bank Bhd and Tenaga Nasional Bhd (TNB) improved two sen each to RM4.06 and RM9.62 respectively, Petronas Chemicals Group Bhd (PetChem) gained five sen to RM8.33 and IHH Healthcare Bhd rose 13 sen to RM6.59.

Of the actives, Nexgram Holdings Bhd edged up half a sen to 2.5 sen, Sedania Innovator Bhd perked seven sen to 70 sen and Ta Win Holdings Bhd eased half a sen to 15 sen, while Dagang NeXchange Bhd (DNeX) reduced 1.5 sen to 81 sen and Sapura Energy Bhd was flat at 10 sen.

On the index board, the FBM Emas Index increased 30.69 points to 11,429.18, the FBMT 100 Index climbed 27.66 points to 11,044.68, the FBM Emas Shariah Index advanced 30.36 points to 12,487.95 and the FBM ACE improved 6.74 points to 7,129.21, while the FBM 70 eased 5.51 points to 15,079.79.

Sector-wise, the Industrial Products and Services Index edged up 0.63 of a point to 203.98, the Plantation Index shed 4.3 points to 6,838.62 and the Financial Services Index advanced 52.61 points to 15,232.42.