Market breadth was positive with advancing stocks beating declining ones by a 2.5-to-1 ratio at the close. A total of 1.1 billion shares changed hands, in line with recent averages.Actively traded stocks include KNM, Lion Corp, SAAG, Time, TA, Lion Diversified, Mulpha and Jotech.
Major gainers comprised mostly blue chips, which accounted for the index’ large rise. They include BAT, Sime Darby, IOI Corp, Tanjong plc and Public Bank-foreign. Losers include PPB, KFC and Petronas Gas. Global stock markets have enjoyed a strong rally in the last two and a half weeks, buoyed by robust gains on Wall Street as investors cheered a series of better than expected earnings. As the Wall Street rally extended into its third week, that gave ammunition to global stock markets to continue rising.
However, there are also signs of increasing caution as investors start to lock in their profits. Stock prices in Japan and China declined slightly on Tuesday, after rising earlier in the day.
Back home, the gains on Bursa Malaysia were also more narrowly restricted to select blue chips, and were less broad-based than the earlier rally from March to May. Trading volume has also been moderate – and consistent – at just over a billion shares per day, compared to as high as 3.9 billion shares at its peak during the earlier rally. After the recent strong gains, it is unclear if profit-taking activities will increase, as stock valuations are already pricing in a strong economic and earnings recovery. Much will again depend on Wall Street and more upcoming economic data to confirm the recovery.