KL bourse soars, beats forecasts
The Malaysian stock market's rally yesterday saw the benchmark index surging to 1,456.96 points, its highest in almost 32 months, beating the year-end targets of at least two research houses
Analysts put down the interest to pent-up demand as the stock market was closed for the second half of last Thursday and all of Friday for Hari Raya.
The FBM KL Composite Index rose by 19.18 points, or 1.3 per cent, to its highest close since January 2008, amid stronger regional markets. The ringgit too had a good day, climbing further against the US dollar to close at RM3.10.
Wong, in a report last month, noted that foreign investors became net buyers of Malaysian shares in June, reversing six months of outflows.
"The trend now is for money to flow from developed markets to emerging markets," he told Business Times yesterday.
The Malaysian benchmark stock index has gained 14.5 per cent so far this year compared with the Philippines' 30.1 per cent, Thailand's 27.6 per cent and Indonesia's 27.5 per cent.
Analysts said the market may continue its uptrend on the back of several catalysts such as more news on the New Economic Model, a list of projects under the 10th Malaysia Plan being disclosed and Budget 2011 next month.
Wong said he is keeping his index year-end target for 2011 at 1,520 points, but will review his 1,450 target for the current year since it has already been breached.
RHB Research too had a similar 1,450-point target for this year.
Sentiment in the region was also lifted on news that global regulators had agreed on stricter capital rules for banks, but gave them longer-than-expected time to comply.
Among the key markets, Taiwan's Taiex Index was the best performer (up 2.6 per cent) yesterday, followed by Hong Kong's Hang Seng Index (up 1.9 per cent) and China's Shenzhen Composite Index (up 1.6 per cent).
At home, the day's top gainer was PPB Group Bhd, which rose RM1.06 to RM17.90, while the most active was KNM Group Bhd, which put on 1 sen to 41.5 sen. Genting Bhd added 16 sen to close at a record RM9.57.
Analysts put down the interest to pent-up demand as the stock market was closed for the second half of last Thursday and all of Friday for Hari Raya.
The FBM KL Composite Index rose by 19.18 points, or 1.3 per cent, to its highest close since January 2008, amid stronger regional markets. The ringgit too had a good day, climbing further against the US dollar to close at RM3.10.Some 843.1 million shares worth about RM1.9 billion changed hands. Gainer thumped losers 542 to 218, with 254 counters unchanged.
"We're just playing catch-up," said Terence Wong, head of research at CIMB Securities Sdn Bhd, pointing out that there has been stronger interest from foreign investors of late.
Emerging markets like Malaysia, and more so Indonesia, Thailand and the Philippines, are highly sought after by foreign investors seeking better returns amid lacklustre markets in developing countries.
Wong, in a report last month, noted that foreign investors became net buyers of Malaysian shares in June, reversing six months of outflows.
"The trend now is for money to flow from developed markets to emerging markets," he told Business Times yesterday.
The Malaysian benchmark stock index has gained 14.5 per cent so far this year compared with the Philippines' 30.1 per cent, Thailand's 27.6 per cent and Indonesia's 27.5 per cent.
Analysts said the market may continue its uptrend on the back of several catalysts such as more news on the New Economic Model, a list of projects under the 10th Malaysia Plan being disclosed and Budget 2011 next month.
Wong said he is keeping his index year-end target for 2011 at 1,520 points, but will review his 1,450 target for the current year since it has already been breached.
RHB Research too had a similar 1,450-point target for this year.
Sentiment in the region was also lifted on news that global regulators had agreed on stricter capital rules for banks, but gave them longer-than-expected time to comply.
Among the key markets, Taiwan's Taiex Index was the best performer (up 2.6 per cent) yesterday, followed by Hong Kong's Hang Seng Index (up 1.9 per cent) and China's Shenzhen Composite Index (up 1.6 per cent).
At home, the day's top gainer was PPB Group Bhd, which rose RM1.06 to RM17.90, while the most active was KNM Group Bhd, which put on 1 sen to 41.5 sen. Genting Bhd added 16 sen to close at a record RM9.57.
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