KUALA LUMPUR,. Most Bursa Malaysia indices rose unexpectedly on Monday after market reopened, with average daily trading volume hit over RM7 billion in value, the highest ever in history.
Ringgit bounced back from 3.9850/9880 to the US dollar in morning trade to settle at to settle at RM3.9505, although analysts expected the currency to come under pressure after the shock election outcome.
Analysts said the key FTSE Bursa Malaysia KLCI ended in green territory as investors regained confidence after the setting up of Council of Elders and Prime Minister Tun Dr Mahathir Mohamad’s pledge to boost stock market.
They added that there was also strong buying support from local funds.
Local institutions bought net RM238.2 million while foreign funds sold net RM682.6 million.
The index closed at 1,850.42, 3.91 points or 0.21 per cent higher than Tuesday’s close, a day before the 14th General Election.
Volume jumped to 6.58 billion units valued at RM7.31 billion from 2.35 billion units valued at RM2.80 billion on last Tuesday.
Recent highs of trading volume were on November 30, 2017 (RM6.029 billion in value) and on May 31, 2016 (RM6.68 billion).
FBMKLCI rebounded after early jitters in the morning and later gained momentum to hit its intraday high of 1,875.92 points around 4.30pm before ending lower to 1,850.42.
Press Metal Aluminium Holding Bhd, PPB Group Bhd, Genting Bhd and Nestle (Malaysia) Bhd were the main drivers to push the index to close higher.
MIDF Research head Redza Rahman said more than RM2 billion worth of trading volume were concentrated on CIMB Group Holdings Bhd, Sapura Energy Bhd, Malayan Banking Bhd, Public Bank Bhd, AirAsia Group Bhd, Felda Global Ventures Bhd and Gamuda Bhd shares.
He said among the factors that influenced the investor’s market confidence in the market was Dr Mahathir’s pledge to boost local stock markets.
The appointment of advisors or the Council of Elders shows that the government is serious in improving the country’s governance.
Stock market analyst Nazarry Rosli said local institutional funds supported the stock market, causing most indices to close in green territory.
He, however, expected some profit taking to take place in the next few days.
Meanwhile, Bursa Malaysia Small Cap Index closed at 14,854.37 points, 2.08 per cent higher than Tuesday.
Other indices such as Finance, Technology, Consumer, Plantation and Real Estate Investment Trusts also closed in positive territory.
Indices such as FBMT100 and FBM70 however ended in red at 12,686.12 points and 15,152.96 points respectively.