BURSA Malaysia rallied by 0.94% at the close today after Bank Negara Malaysia slashed the overnight policy rate (OPR) by 50 basis points to 2.0%, a move that is in line with market expectations.
At the close, key index FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 12.96 points to 1,389.55, after moving between 1,378.75 and 1,398.07 during the day.
The index had opened 2.16 points higher at 1,378.75.
Market breadth was positive as gainers trumped losers 774 to 162, while 339 counters were unchanged, 601 untraded and 17 others suspended.
Turnover rose to 5.76 billion shares worth RM2.70 bil from 5.47 billion shares worth RM2.48 bil on Monday.
In its third Monetary Policy Committee (MPC) meeting for the year today, the central bank lowered the OPR to 2.0% — the lowest level in 10 years, last seen in February 2010.
Correspondingly, the ceiling and floor rates of the OPR corridor were reduced to 2.25% and 1.75%, respectively.
OANDA Asia Pacific senior market analyst Jeffrey Halley said the OPR cut was expected by most market commentators; anything less would have been perceived as a market negative.
“The FBM KLCI has rallied, boosted by BNM’s cut, as the central bank does its part to assist in the country’s recovery.
“This follows the giant fiscal stimulus package from the government and a relaxation of the pandemic lockdown measures yesterday,” he told Bernama.
Among heavyweights, Maybank and Petronas Chemicals added 10 sen each to RM7.48 and RM5.50, respectively, TNB expanded by 26 sen to RM12.38, Public Bank went up 20 sen to RM16.06, IHH Healthcare gained three sen to RM5.18, while Maxis and MISC were flat at RM5.28 and RM7.80.
As for the actives, Ageson added two sen to 18 sen, Velesto and Bumi Armada rose 1.5 sen each to 16 sen and 18 sen, respectively, while Fintec Global was one sen higher at five sen, Hibiscus Petroleum went up three sen to 52 sen and Ekovest advanced 2.5 sen to 53 sen.
On the index board, the FBM Emas Index strengthened 107.33 points to 9,746.20, the FBMT 100 Index increased 96.55 points to 9,603.83, the FBM Emas Shariah Index appreciated 122.36 points to 10,842.61, the FBM ACE put on 132.89 points to 4,909.88 and the FBM 70 surged 147.04 points to 11,786.51.
Sector-wise, the Financial Services Index expanded by 124.69 points to 12,354.10, the Industrial Products and Services Index inched up 2.04 points to 120.32, while the Plantation Index went up 28.05 points to 6,251.76.
Main Market volume increased to 4.12 billion shares worth RM2.34 bil from Monday’s 3.37 billion shares valued at RM2.08 bil.
Warrants turnover declined to 276.86 million units worth RM47.54 mil from 349.72 million units worth RM77.41 mil yesterday.
Volume on the ACE Market eased slightly to 1.36 billion shares worth RM315.07 mil from 1.75 billion shares worth RM316.89 mil previously.
Consumer products and services accounted for 519.73 million shares traded on the Main Market, industrial products and services (502.76 million), construction (731.72 million), technology (617.09 million), SPAC (nil), financial services (45.30 million), property (356.15 million), plantations (554.08 million), REITs (8.72 million), closed/fund (2,000), energy (847.76 billion), healthcare (36.23 million), telecommunications and media (147.10 million), transportation and logistics (234.40 million), and utilities (21.41 million). — May 5, 2020, Bernama
