KUALA LUMPUR (March 24): Malaysian stocks continued to hold up in the afternoon session to inch higher alongside regional markets today, with small- and mid-cap counters leading the pack.

The benchmark FBM KLCI opened higher after noon market break, up 3.88% at the time of writing.

The FBM Small Cap Index, which comprises companies within the top 98% of the Main Market excluding the Top 100 Index constituents, gained 5.11%. The FBM ACE Index, meanwhile, rose 4.67%.

Sector-wise, technology stocks led gains with the Technology Index up 7.1%, followed by the Energy Index (up 7.04%) and financial services (up 6.32%).

After banking stocks' early gains, investors also flocked to consumer stocks, which led the gainers across Bursa Malaysia with Dutch Lady Milk Industries Bhd (up 7.02% to RM39.92), Fraser & Neave Bhd (up 7.21% to RM30.02) and Carlsberg Brewery Malaysia Bhd (up 8.62% to RM21.42).

The biggest gainers among banking and financial services group were Hong Leong Bank Bhd (up 15.28% to RM14.64), Public Bank Bhd (up 11.08% to RM15.44) and Alliance Bank M Bhd (up 7.4% to RM12.48).

Oil and gas stocks dominated the top active counters, led by Hibiscus Petroleum Bhd, Bumi Armada Bhd, Sapura Energy Bhd and Velesto Energy Bhd. Meanwhile leading the actives were little known computer software group Vortex Consolidated Bhd.

On the other hand, the top losers comprised the put warrants for the Hang Seng Index and the S&P 500, as investors weighed on the US Federal Reserve (Fed) indication to address the economic downcycle and the impact on recession risks.

At the time of writing, Brent crude futures held steady at 3.55% higher to US$27.99 per barrel.

The ringgit pared some gains against the US dollar, but still up 0.2% at 4.4383. The Malaysian currency also strengthened against the baht (up 0.42% to 13.4874), but lost its footing against the Singapore dollar (down 0.17% at 3.0556).

The gain in Malaysia alongside regional markets follows investor optimism towards yesterday's indication by the Fed to undertake a ‘limitless’ quantitative easing to stabilise the financial system and address the economic downcycle.

US markets, however, closed lower on Monday, as the Fed stimulus was seen as not addressing the short-term impact of the Covid-19 outbreak in the US, which is currently has the third biggest number of confirmed cases after China and Italy.

In Malaysia, the government confirmed one new Covid-19 death today, bringing the total to 15. The Health director-general is scheduled to address the press at 5pm today to present the latest numbers.

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