BURSA MALAYSIA ENDS MORNING SESSION HIGHER IN LINE WITH REGIONAL PEERS

KUALA LUMPUR, Sept 19 (Bernama) -- Bursa Malaysia ended the morning session higher in tandem with regional markets, as buying sentiments improved after the United States Federal Reserve (Fed) announced its interest rate cut of half a percentage point. 

At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) edged up 2.21 points to 1,662.80  from Wednesday's close of 1,660.59.

The benchmark index opened 2.68 points higher at 1,663.27 and moved between 1,657.13 and 1,663.27 throughout the morning trading session.

Gainers trounced decliners 711 to 334, with 399 counters unchanged, 1,061 untraded and 10 suspended.

Turnover stood at 2.36 billion units worth RM1.71 billion. 

SPI Asset Management managing partner Stephen Innes said Asian markets were riding high, as the ripple effect from the Fed’s rate cut suggested that it would be much easier for central banks across the region to cut rates, potentially fueling growth and boosting equity market valuations.

“With the Fed taking the plunge, these more cautious central banks may finally feel encouraged to join the rate-cut party. The hesitation, of course, is due to the risk of currency depreciation.

“Lowering rates ahead of the Fed can devalue national currencies, making imports more expensive and potentially reigniting inflation. However, the Fed’s commitment to what appears to be a prolonged easing cycle should ease some of these fears,” he said in a note today. 

Meanwhile, Rakuten Trade Sdn Bhd's equity research vice-president, Thong Pak Leng, believes that buyers would return following the Fed’s big rate cut, which is positive for regional currencies. 

"Therefore, we expect the index to hover within the 1,660-1,670 range today," he added.

Regionally, Singapore's Straits Times Index advanced 0.72 per cent to 3,618.18, Hong Kong's Hang Seng Index strengthened by 1.81 per cent to 17,978.83, Japan's Nikkei 225 went up by 2.55 per cent to 37,307.27 and Indonesia's Jakarta Composite Index gained 0.74 per cent to 7,886.79. 

Back home, heavyweights IHH Healthcare, Petronas Chemicals and CelcomDigi rose five sen each to RM7.16, RM5.57 and RM3.80, respectively, and Press Metal jumped eight sen to RM4.93.

Meanwhile, Hong Leong Bank was flat at RM21.20, Maybank fell four sen to RM10.64, Public Bank shed two sen to RM4.69, CIMB declined five sen to RM8.28 and TNB trimmed 10 sen to RM14.64. 

As for the active counters, ACE Market debutant Solar District Cooling Group surged 13.5 sen to 51.5 sen, Globetronics added eight sen to 61.5 sen, Genetec surged 14 sen to 96 sen and Cape EMS rose one sen to 37.5 sen.

At the same time, Luster Industries and Alpha IVF were flat at 6.5 sen and 35.5 sen, while MyEG inched down half-a-sen to 95 sen. 

On the index board, the FBM Emas Index widened 59.66 points to 12,463.64, the FBM Emas Shariah Index firmed 92.52 points to 12,351.16, the FBMT 100 Index went up 49.01 points to 12,164.81, the FBM 70 Index soared 193.65 points to 17,761.61, and the FBM ACE Index bagged 63.25 points to 5,150.06.   

By sector, the Financial Services Index dipped 40.88 points to 19,619.21, while the Industrial Products and Services Index grew 2.40 points to 178.48, the Energy Index was 5.30 points higher at 867.57 and the Plantation Index bounced 6.63 points to 7,170.83.  

-- BERNAMA