KUALA LUMPUR: The FBM KLCI pared gains at it entered midday following a positive investor reaction to the Bank of England’s announcement of bond-purchasing measures to stabilise a sell-off in gilts.
Investors were quick to cash in on the early morning rally in equities prices as global interest rate hike and recession risks continue to mount.
At 12.30pm, the key index was up 2.66 points to 1,404.55. There were 384 gainers compared with 312 decliners.
Trading volume was 1.15 billion shares exchanging hands for RM736.57mil.
However, analysts opine the optimism will be short-lived as sustained high inflation in global markets will continue to weigh on sentiment.
On Malaysia’s blue-chip index, there were modest gains in most counters including PETRONAS Chemicals up three sen to RM8.40, Sime Darby Plantation
rising nine sen to RM4.17 and Nestle adding RM1.20 to RM131.90
Tenaga Nasional was down right sen to RM8.32 while Public Bank descended four sen to RM4.22.
Recent market debutant PT Resources meanwhile topped the actives list once again with 68.7 million shares traded, rising four sen to 45.5 sen.
Top Glove was the second most heavily traded, losing one sen to 58 sen, and NWP gained 0.5 sen to 25 sen.
In regional markets, the mood remained bullish over the morning session although gains were capped by profit-taking amid the highly uncertain environment.
Japan’s Nikkei rose 0.7% to 26,358, South Korea’s Kospi gained 1.35% to 2,198 and China’s composite index added 0.3% to 3,053.
Hong Kong’s Hang Seng was up 1.25% to 17,466 and Australia’s ASX200 jumped 2% to 6,592.