KUALA LUMPUR: Stock prices on Bursa Malaysia closed higher on Friday, helped by bargain hunting activities after the recent steep falls. The local stock market also took its cue from Wall Street, where the major indices posted modest gains following a drop in oil prices. However, investors stayed cautious due to lingering political uncertainties and external economic concerns.
Market breadth was more mixed, with advancing stocks beating declining ones by a slim 3-to-2 margin. Trading volume remained low with just 450 million shares changing hands.
The KLCI was in positive territory throughout the day, rising as much as 12 points in the morning. It gave back much of its gains in the afternoon, but managed to close 10.3 points higher at 1,206.7 points, helped by a late spurt of buying.
Volume leaders on Friday comprised mostly blue chips such as Gamuda, IOI Corp, Maybank, Genting, Resorts and TM. Gainers include BAT, KL Kepong, Asiatic, TMI and Public Bank-foreign. Losers include DiGi, Nestle and MISC.
It is unclear where the market will head next, given the lingering political and external economic uncertainties.
Political uncertainties have emerged as a key factor after the Sabah Progressive Party (SAPP) on Wednesday declared that it will support a vote of no confidence against the Prime Minister in the upcoming Parliament session on Monday. Speculation is rife that the party will pull out of the Barisan Nasional coalition and prompt other Sabah parties to do so as well.
The latest developments will sideline investors further, as investors await for developments to unfold. Confidence has already been affected by prevailing external uncertainties and rising inflationary pressures following the recent sharp petrol price hike.
The upcoming FOMC meeting on Tuesday is not likely to see a hike in US interest rates, but investors will be assessing the Federal Reserve's tone for future rate hikes. The Fed Fund futures are pricing in a high probability of a rate hike from 2% to 2.5% by the end of the year.
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