- The local stock market snapped a three-day losing streak to end higher today on bargain hunting
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) settled at 1,587.12, up 4.27 points after fluctuating between 1,576.96 and 1,594.91 throughout the day.
Dealers attributed the rebound to a late-afternoon rally in China and other regional bourses that prompted bargain hunting in the local market.
“Bargain hunters emerged at Bursa with investors nibbling selectively at value buys after several bearish sessions.”
In China, the Shanghai Composite Index surged 2.93% to 3,170.57, despite the country’s imports data for August shrinking for a 10th consecutive month.
“A slump in China’s August imports raised fears of a more severe slowdown in the world’s second-biggest economy, but as players had priced it in, a rebound followed suit,” another dealer said.
Hong Kong’s Hang Seng Index also rebounded, surging 3.28% to 21,259.04, while Singapore’s Straits Times improved 1.12% to 2,884.31.
On Bursa Malaysia, gainers outpaced losers by 547 to 242 with 277 counters unchanged, 747 untraded and 18 others suspended.
Total volume rose to 2.01 billion units worth RM1.71 billion from yesterday’s 1.68 billion units worth RM1.53 billion.
Despite bouncing back from a lower opening at 4.3540/3600 against the greenback this morning, the ringgit closed lower for the fifth consecutive trading day on worries over the global economy’s health, prompting more investors to turn to safe havens, dealers said.
At 5pm, the ringgit was quoted at 4.3360/3410 against the greenback from 4.3275/3325 yesterday.
A dealer said there were renewed concerns over global economic growth, overcoming market expectations that the US Federal Reserve would raise interest rates next week.
“The market sentiment remained frail after China’s latest data showed the world’s second-largest economy’s imports in August tumbled for the 10th consecutive month, with implications for other emerging markets.”
The ringgit was also traded mostly lower against other major currencies. It declined against the Singapore dollar to 3.0475/0527 from yesterday’s 3.0330/0374 but strengthened against the yen to 3.6142/6199 from 3.6277/6325 previously.
The local unit eased against the pound sterling to 6.6670/6773 from 6.6038/6127 yesterday and weakened against the euro to 4.8485/8550 from 4.8299/8372 previously.