KLCI Tops 1,600 As Budget 2021 Debates Continues

The FBM KLCI topped the 1,600-point mark as it extended yesterday's rally on growing optimism over the discovery of the Covid-19 vaccines and as Parliament discussions over Budget 2021 continued.

At 12.30pm, the key index was up 4.26 points to 1,601.84 after rising out of the red in mid-morning.

Gainers and losers were necks to the neck at 322 and 388 while 409 counters were unchanged, 1,257 untraded, and 24 others suspended.

Total volume stood at 1.62 billion worth RM785.67 million. Malacca Securities, in a research note today, said the FBM KLCI was traded in a lackluster manner as the key index re-tested the 1,600 psychological level.

“As there was the absence of a follow-through buying beyond the aforementioned level, we reckon that the local bourse will be poised for further consolidation,” it said.

It added that at the same time, the uncertainty surrounding the vote on Budget 2021 is also keeping investors on their toes.

Investor anticipation over the passing of the Budget 2021 bill rose as news portals reported that Parliament proceedings will be in session until all matters relating to the policy stage of the bill are settled.

In the meantime, the correction pressures on Bursa Malaysia appear to have subsided as talk of further US stimulus under Joe Biden's incoming administration propped up optimism. Meanwhile, the energy sector became the best performing sector at the opening as benchmark Brent crude rose to an eight-month high on global optimism.

Bloomberg reported that global oil prices hit the highest level since March as hopes for a vaccine rollout within weeks brightened the outlook for fuel consumption.

Brent crude futures rose 2.5 percent in London, following a broader market rally after AstraZeneca Plc became the latest company to report a vaccine that protects most people.

The prospect of treatment is starting to reshape the oil futures curve, with some near-term prices rebounding more than later-dated ones, a bullish structure known as backwardation that signals investors expecting supply and demand to return to balance.

Among the actives, Pegasus Heights was flat at 30 sen, Vivocom reduced 23 sen to 99 sen, and P.A resources dipped 1.5 sen to 13.5 sen.

On the index board, the FBM Emas Index was 21.80 points lower at 11,468.87, the FBMT 100 Index shed 22.80 points to 11,468.87, the FBM Emas Shariah Index reduced 58.14 points to 13,211.50, and the FBM 70 trimmed 15.42 points to 14,761.15.