FBM KLCI jumps 1.6% higher @ 1097.24

Stocks in Bursa Malaysia climbed 17.61 points to close at 1097.24 points Wednesday on optimism that the global economy was showing signs of recovery following better-than-expected data on the corporate front as Goldman Sachs and Intel reported quarterly results that surpassed expectations.

On the economic front, data showed US retail sales rose 0.6% in June, which was higher than forecast. Reflecting the improved sentiment, the benchmark FBM KLCI was in positive territory throughout the session, underpinned by buying support on index-linked stocks as well as selected penny stocks with the return of risk appetite among investors. A big part of today’s gain was attributed to banking stocks, with Maybank jumping more than 4% to RM 5.90.

“It was a good day for retail investors as many were drawn back in from the sidelines after days of sideways consolidation,” a dealer told Dow Jones Newswires.“Foreign funds were also active in accumulating blue-chips,” he added.

Overall, the performance of local market in the next few days would depend on the US market as the second quarter earnings season report from US companies this week will serve as a good indicator of the sustainability of the global economic recovery.
The Finance Index jumped 2.81% to 8942.75 points, the Plantation Index added 0.74% to 5356.74 points and the Properties Index rose 1.69% to 713.07 points. The market traded within a range of 25.24 points between an intra-day high of 1104.87 and a low of 1079.63 during the session.

Actively traded stocks include KNM, SAAG, TIME, IRIS, HUAAN, UEMLAND, L&G, SCOMI, TEBRAU and AXIATA.
Trading volume increased to 1.36 bil shares worth RM1.79 bil as compared to Tuesday's 788.98 mil shares worth RM1.11 bil. Leading Movers were MAYBANK (+25 sen to RM5.90), PUBLIC BANK (+25 sen to RM9.95), COMMERZ (+20 sen to RM9.70), SIME (+15 sen to RM7.35), and AXIATA (+8 sen to RM2.70).

Lagging Movers were PARKSON HOLINGS BHD (-16 sen to RM4.94), DIGI (-20 sen to RM22.00), KLK (-10 sen to RM11.90), BERJAYA SPORTS TOTO (-4 sen to RM4.24) and PLUS (-2 sen to RM3.18). Market breadth was positive with 574 gainers as compared to 120 losers.