by ASILA JALIL / pic by TMR FILE

THE positive performance in regional markets and the overnight rally on Wall Street coupled with optimistic views on the reopening of Malaysia’s economy has improved investor sentiment on Bursa Malaysia.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closed 30.94 points or 2.03% higher at 1,553.37 as inventors bought into index related banking stocks and heavyweights like Genting Bhd and IHH Healthcare Bhd.

Hong Leong Financial Group Bhd rose 4% or 70 sen to RM18.02 while Hong Leong Bank closed 3.26% or 60 sen higher at RM19.

Public Bank Bhd rose 17 sen to RM4.11 on heavy trade while Malayan Banking Bhd and CIMB Group Holdings Bhd rose 15 sen each to RM8.32 and RM4.83 respectively.

Rakuten Trade Research VP Thong Pak Leng said investors were attracted by the gains on Wall Street and regional markets which rose on strong inflow of foreign funds.

He added that the optimism surrounding the reopening of the economy help contribute to the rise in the local equity market.

“The inflow of foreign buyers will be positive for the market. I think heavyweights like banks will be in favour, also recovery plays such as gaming, retail, leisure, consumer goods & services,” he told The Malaysian Reserve yesterday.

Areca Capital Sdn Bhd CEO Danny Wong Teck Meng said there were two major key factors that led to the poor performance of the local exchange previously, namely political uncertainty and the increase in Covid-19 cases. Some of the concerns have eased.

“We feel that somewhat the political overhang is removed after the new prime minister was announced and the high vaccination rates have eased the concern of the public healthcare system,” he said.

He said with the improvement in major risk factors, the FBM KLCI is relatively attractive based on low foreign holdings which stand at around 20.3%, attractive valuations, a potential economic recovery and substantial local liquidity in the system.