BURSA Malaysia ended mixed on Wednesday as investors cheered the much-better-than-expected first quarter 2020 (1Q20) gross domestic product (GDP) growth.
At the close, the benchmark FTSE Bursa Malaysia KCLI (FBM KLCI) went up 17.2 points to 1,397.13 from 1,379.93 at yesterday’s close.
The index had opened 8.50 points higher at 1,383.22 and moved between 1,379.10 and 1,400.67.
However, market breadth was negative with losers surpassing gainers 558 to 395, while 350 counters were unchanged, 562 untraded and 17 others suspended.
Some sectors saw profit-taking activities after the strong performance recorded earlier.
The market saw active trade with total turnover jumping to 9.59 billion units worth RM5.1 bil from 6.39 billion units worth RM3.73 bil.
Bank Islam chief economist Mohd Afzanizam Abdul Rashid said many had expected a negative print for 1Q20.
Bank Negara Malaysia (BNM) announced today that the country’s economic growth moderated to 0.7% in 1Q20 — the weakest growth rate since 3Q09 — due to the Covid-19 pandemic and the implementation of the Movement Control Order.
“In its press statement, BNM was quite clear that the 2Q20 growth is going to contract. In that sense, BNM is cognisant about what may come next.
“The overnight policy rate (OPR) could stay at 2.0% and this should help banks’ earnings as downside risks for net interest margin (NIM) compression could be limited,” Mohd Afzanizam told Bernama.
He noted that rubber glove-related stocks have been doing well as concerns over Covid-19 have not fully abated, although talks on the reopening of the economy have gained momentum.
“The uptick in new cases in Wuhan of late seems to suggest that risks of possible resurgence in new cases are real,” he said, adding that as such, healthcare-related sectors are expected to witness strong demand throughout the year.
Additionally, investors also lauded the government’s plan to announce a six-month economic recovery plan by the end of this month to resuscitate the country’s economy.
Among the heavyweight counters, Hartalega jumped RM1.33 to RM8.86 and Top Glove rose RM1.32 to RM9.31 amidst a surge in global demand for rubber gloves from the medical sector.
IHH Healthcare added 19 sen to RM5.35 and IOI went up 14 sen to RM3.99.
Tenaga, however, continued its downtrend, losing 24 sen to RM12.10 while Maybank dropped five sen to RM7.39.
As for the actives, medical and healthcare equipment manufacturer K-One added six sen to 31 sen, HLT Global went up 11.5 sen to 49.5 sen, and BCM Alliance expanded 3.5 sen to 24 sen.
On the index board, the FBM Emas Index improved 97.92 points to 9,825.95, the FBMT 100 Index gained 103.43 points to 9,675.50, the FBM Emas Shariah Index added 205.28 points to 11,034.77, the FBM ACE climbed 90.26 points to 5,291.12 and the FBM 70 strengthened 63.47 points to 11,953.81.
Sector-wise, the Financial Services Index bagged 44.32 points to 12,257.82, the Industrial Products and Services Index inched down 0.33 of a point to 120.22, while the Plantation Index went up 30.91 points to 6,247.49.
Main Market volume rose to 4.15 billion shares worth RM3.54 bil from 3.58 billion shares valued at RM2.83 bil yesterday.
Warrants turnover increased to 422.80 million units worth RM104.86 mil from 333.64 million units worth RM64.36 mil yesterday.
Volume on the ACE Market swelled to 5.02 billion shares worth RM1.45 bil from 2.48 billion shares worth RM834.31 mil previously.
Consumer products and services accounted for 678.19 million shares traded on the Main Market, industrial products and services (1.03 billion), construction (202.06 million), technology (543.50 million), SPAC (nil), financial services (59.34 million), property (206.84 million), plantations (123.24 million), REITs (7.0 million), closed/fund (224,500), energy (639.24 million), healthcare (195.30 million), telecommunications and media (206.30 million), transportation and logistics (209.76 million), and utilities (52.05 million). — May 13, 2020, Bernama
