KUALA LUMPUR (Jan 23): Bursa Malaysia closed higher for the third consecutive day on Tuesday, buoyed by continuous buying support in the heavyweight counters, especially banking-related stocks, ahead of Bank Negara Malaysia’s (BNM) overnight policy rate (OPR) decision.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.92 points to 1,496.11 from Monday's close of 1,491.19.

The barometer index, which opened 1.37 points better at 1,492.56 this morning, moved between 1,490.2 and 1,500.39 throughout the day.

Mild profit taking emerged early in the morning session, but the key index retested the 1,500-level at mid-morning and maintained its positive momentum thereafter.

The broader market saw advancers outpacing losers 511 to 470, while 465 counters were unchanged, 826 untraded and 13 others suspended.

Turnover increased to 5.16 billion units valued at RM3.33 billion from 4.79 billion units worth RM3.12 billion on Monday.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the KLCI was fuelled by buying in banking-related stocks ahead of BNM’s monetary policy committee (MPC) decision on Wednesday.

He said most economists are predicting that the MPC will keep the OPR steady at 3%.

“Given that the real rate of interest which is currently at 1.5%, BNM’s monetary policy stance can be deemed tight as the average real rate of interest since 2004 stood at 0.6%.

“Given that inflation rate has trended down to 1.5% and the gross domestic product growth is stabilising at 3.4%, perhaps it is best to maintain the OPR at the current rate,” he said.

BNM's MPC is sitting on Tuesday and Wednesday to decide on the key rate in its first meeting of the year. 

To recap, the central bank kept the OPR at 3% at its last meeting of 2023, making it the third pause in a row.

Meanwhile, Apex Securities Bhd head of research Kenneth Leong said the local market took a cue from the positive developments on Wall Street overnight, with gains largely driven by banking and Petronas-related heavyweights as crude oil prices ticked higher with Brent oil price nearing US$80 (RM377.70) per barrel.

“Going forward, the extended recovery is expected to remain in place amid the calmer market conditions, with the key index looking to take another jab towards the 1,500-psychological level.

“Investors will be keeping a close tab on BNM's monetary policy decision tomorrow [Wednesday], and we expect the central bank to keep the benchmark interest rate unchanged,” he said.

Leong said further recovery might lift the key index towards the immediate resistance located at 1,504, while the near-term support pegged at 1,465.

Among the banking stocks, Maybank Bhd increased eight sen to RM9.09, CIMB Group Holdings Bhd rose five sen to RM6.02, Public Bank Bhd bagged one sen to RM4.35, Hong Leong Bank Bhd garnered 10 sen to RM19.12, and RHB Bank Bhd put on three sen to RM5.60.

As for other heavyweights, Tenaga Nasional Bhd gained two sen to RM10.50, Petronas Chemicals Group Bhd advanced eight sen to RM6.79, IHH Healthcare Bhd perked three sen to RM6, CelcomDigi Bhd added one sen to RM4.24, and Press Metal Aluminium Holdings Bhd shed one sen to RM4.77.

Of the actives, Widad Group Holdings Bhd improved five sen to 18.5 sen, YNH Property Bhd rose 5.5 sen to 61 sen, and Leform Bhd edged up 1.5 sen to 19.5 sen, while Sarawak Consolidated Industries Bhd, Rapid Synergy Bhd and Minetech Resources Bhd were flat at 43.5 sen, RM1.95 and 15.5 sen, respectively. 

On the index board, the FBM Emas Index rose 21.96 points to 11,144.18, the FBMT 100 Index firmed 21.75 points to 10,802.04, and the FBM Emas Shariah Index improved 6.14 points to 11,238.85, and the FBM ACE Index added 20.08 points to 4,853.88.

However, the FBM 70 Index decreased 26.08 points to 15,125.72.

Sector-wise, the Financial Services Index climbed 79.61 points to 16,701.46, the Plantation Index improved 5.07 points to 7,155.8, the Industrial Products and Services Index inched up 0.32 of a point to 173.75, and the Energy Index gained 3.81 points to 858.16, but the Property Index eased 2.46 points to 903.14.

The Main Market volume decreased to 2.96 billion units worth RM2.91 billion from 3.03 billion units worth RM2.79 billion on Monday.

Warrants turnover narrowed to 654.67 million units valued at RM81.17 million versus 663.47 million units valued at RM98.55 million previously. 

However, the ACE Market volume grew to 1.54 billion shares worth RM333.45 million compared with Monday's 1.09 billion shares worth RM223.62 million.

Consumer products and services counters accounted for 301.9 million shares traded on the Main Market, industrial products and services (888.94 million); construction (207.03 million); technology (182.34 million); SPAC (nil); financial services (122.64 million); property (802.17 million); plantation (36.12 million); REITs (23.29 million), closed/fund (42,500); energy (163.53 million); healthcare (58.61 million); telecommunications and media (36.98 million); transportation and logistics (47.67 million); and utilities (91.99 million).

Bursa Malaysia Bhd and its subsidiaries will be closed on Thursday (Jan 25), in conjunction with Thaipusam. Operations will resume on Friday.