Investors stay bullish on blue chips

KUALA LUMPUR: Investors remained positive on blue chips on Bursa Malaysia following the previous day’s surge, as tensions between the US and China eased amid ongoing negotiations.

At the open, the FBM KLCI was down 1.2 points to 1,621.22, but soon rebounded to an early morning  high of 1,625.97.

According to Rakuten Trade, the surge in interest on the local bourse could be a result of buying by local institutions, although it suspects foreign funds may have also turned net buyers of local equities.

“In view of this, we hope that the foreign funds will stay a tad longer thus anticipating the index to trend between the 1,620-1,630 range today,” it said in a note.

TA Securities noted that blue chips are expected to extend their gains on optimism over the easing US-China trade tensions. However, it added that stronger buying momentum and liquidity are needed for a sustained rise to higher levels.

On the blue-chip index, PETRONAS Dagangan gained 16 sen to RM22.68 and RHB rose seven sen to RM6.91.

Genting rose six sen to RM3.46, off news it its offer for Genting Malaysia’s shares had turned unconditional after crossing the 50% equity threshold. 

Among the leading actives, MMAG dropped one sen to 17.5 sen after yesterday’s 60% plunge that triggered an unusual market activity query from Bursa Malaysia.

Borneo Oil rose 0.5 sen to one sen and NexG slid 1.5 sen to 33.5 sen.