The Bursa Malaysia opens higher on positive sentiment

[ASEAN NOW Content Team]

 

Following encouraging international tourist arrivals following the reopening of the country's borders on April 1, the Bursa Malaysia reversed yesterday's losses to begin higher today on improving market mood, according to an analyst.
Approximately 500,000 international tourists have arrived Malaysia since last week, according to reports, and the Tourism, Arts and Culture Ministry is sure that the two million tourist arrivals target would be met by the end of the year.

The FTSE Bursa Malaysia KLCI (FBM KLCI) rose 5.59 points, or 0.36 percent, to 1,555.00 at 9:05 a.m. from its previous closing of 1,549.41.

At 1,552.38, the benchmark index opened 2.97 points higher.

 

Gainers outnumbered losers 176 to 105 on the broader market, with 190 counters unchanged, 1,810 untraded, and 22 others suspended.

A total of 110.88 million units worth RM53.40 billion were sold.

Investors may remain cautious in the near term, according to Malacca Securities Sdn Bhd, as current market sentiment may be compounded by continuous Wall Street turbulence.

According to a note released today by the research firm, Wall Street closed lower due to growing fears about the impact of persistently high inflation and future erosion of business profitability.

 

"On a related issue, Indonesia's decision to abolish its prohibition on palm oil exports may provide relief to the world market, lowering the price of crude palm oil (CPO)."
However, with this news, plantation stocks may see selling pressure.

"In the meanwhile, investors may turn their attention to the banking sector in anticipation of firmer earnings that will fare well in the face of interest rate hikes," it said.

 

The CPO is currently trading at roughly RM6,000, while crude oil is trading at around US$112 per barrel.