All round confidence leads FBM KLCI to new high

The benchmark index, which was up 1.071 per cent or 17.93 points at close, was higher from the previous all-time high of 1,688.95 recorded on Monday with strong gains seen in telecommunication company Axiata.

Inter-Pacific Research Sdn Bhd Head of Research, Pong Teng Siew said the main driver for the local bourse was the strong performances seen in overseas bourses which had reacted positively to the US latest move to avert a fiscal cliff.

Pong said with the fiscal cliff somewhat averted, though not totally, had brought confidence back to the markets globally.

Apart from that, participation of foreign funds in the local bourse was very active today with most local institutionals selling their interest while foreign funds did the buying.

"Today alone, there was about RM194 million net inflow to the local bourse which is quite strong. For the last one and a half years, there was about RM19 billion net inflow by foreign funds," he told Bernama here Thursday.

He said foreign funds participation in the market today was about 27.5 per cent while local institutionals took 53.5 per cent and retail about 19 per cent.

Pong said the research house was maintaining its FBM KLCI psychological barrier at 1,700 level, and added that if the upside continued, it will probably not go beyond the 1,710 level.

Despite profit-taking activities yesterday, share prices on the local bourse rebounded today with the benchmark index surpassing 1,688.95 as early as the first five minutes of trading.

It continued to break fresh highs for the next three minutes until it reached 1,690.82 at 9.08am, after which it retained a higher than the opening level of 1,681.42 throughout the day before hitting the all-time high at closing.

Persistent buying in selected heavyweights and bluechips during the last hour of trading also kept the steady pace for the FBM KLCI.