PETALING JAYA: Bursa Malaysia strengthened by 1.16%, echoing Hong Kong’s Hang Seng Index (HSI) that surged by over 0.8% on the back of China’s decision to ease its Covid-19-related restrictive measures.
With its zero-Covid policy still in play, Chinese officials have decided to halve its inbound visitors’ isolation period to seven days, with a further three days to be completed at home, which has impacted markets across the world.
The HSI surged 189.45 points to 22,418.97 and consequently, at 5pm, the benchmark FBM KLCI rose 16.62 points to 1,454.74 from Monday’s close of 1,438.12. Malaysia’s key index opened 0.86 points higher at 1,438.98 and fluctuated between 1,431.35 and 1,455.46 throughout the trading period.
Regionally, Singapore’s Straits Times Index improved by a slight 0.09% to 3,140.21, Japan’s Nikkei 225 was up 0.66% to 27,049.47, and China’s Shanghai Stock Exchange Composite Index rose 0.89% to 3,409.21.
Among Bursa Malaysia gainers, Nestle (M) Bhd rose RM1.90 to RM135.40 per share, PPB Group Bhd gained 7.33% or RM1.10 to RM16.10 per share, and Petronas Dagangan Bhd improved by 62 sen to RM21.69 per share.
While China eases its Covid-19 restrictions, there are different responses across the world, with France telling its citizens to mask up on public transport after concerns regarding a new wave of cases, fuelled by new variants of the disease.
Meanwhile, North Korea continued to fight an outbreak of the pandemic, with its president, Kim Jong Un, chairing another meeting to tighten measures. Due to a gradual increase in the number of Covid-19 cases in Pakistan, its aviation regulator has made masks compulsory on domestic flights.
As reported by Reuters, a US appeals court panel reinstated president Joe Biden’s executive order mandating that federal civilian employees be vaccinated against Covid-19.
In South Africa, the Sinovac Covid-19 vaccine has been conditionally registered.
This was following Sinovac Biotech Ltd’s announcement that the South African Health Products Regulatory Authority granted conditional registration to the vaccine in aged 18 and above adults.
Recently, CGS-CIMB Research reported that the FBM KLCI fell 1.4% week-on-week (w-o-w) due to concerns over rising inflationary pressures, representing the fifth consecutive week of declines for it.
“These concerns were alleviated on the evening of June 24 as the prime minister announced plans to keep power tariffs unchanged for the second half of this year and reinstate a ceiling price for chicken,” it said in the report.
The research house noted that the worst sectors to be affected were the energy sector that saw a 5.9% w-o-w decline; the plantation sector dipping 4.2% w-o-w and the construction sector falling 2.4% w-o-w.The top-performing sectors for last week were utilities and consumer with a 0.7% and 0.5% w-o-w improvement, respectively. Despite taking a dip of 0.2% w-o-w, the telecommunications sector was also included in the top sectors for last week.