KLCI Edges Higher As Businesses Allowed To Operate During MCO Go Full Capacity

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The FBM KLCI edged higher this morning after the government allowed approved economic sectors to operate at full capacity from today, while regional markets crept up as well.

International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali yesterday said all economic sectors that have been allowed to operate during the movement control order (MCO) period can ramp up their operations to full capacity starting today.

At 9.05am, the FBM KLCI gained 2.80 points to 1,375.00.

The early gainers included KESM Industries Bhd, Petronas Gas Bhd, Carlsberg Brewery Malaysia Bhd, Tenaga Nasional Bhd, Yinson Holdings Bhd, IHH Healthcare Bhd, Notion VTec Bhd, Heieneken Malaysia Bhd, Boustead Heavy Industries Corp Bhd and Uchi Technology Bhd.

Reuters said Asian equities made cautious gains in early trade on Wednesday following mixed U.S. corporate earnings while oil prices looked set for more wild swings as storage concerns capped optimism about easing coronavirus lockdowns.

Technology stocks drove all three major U.S. stock indexes into the red, though they remained within 20% of their February all-time highs, it said.

Hong Leong IB Research said the market may resume its recovery path after International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali mentioned that all economic sectors that have been allowed to operate during the MCO period can ramp up their operations to full capacity starting today.

“With this positive statement, coupled with the extension of the short selling ban till end June, KLCI may be supported over the near term.

“However, given the weaker outlook in oil prices following the Covid-19 episode, coupled with the upcoming reporting season in May-June, it may limit the upside potential moving forward,” it said.

Source THEEDGEMARKETS

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