KUALA LUMPUR: Property and construction counters ended on a high yesteday with a total of six stocks surged more than 10 per cent as FTSE Bursa Malaysia KLCI extended its winning streak to nine days.
Market breadth was significantly positive across the two counters possibly on hope that the country’s mega projects, currently up for review, may be revived, an analyst said.
The key benchmark index ended 0.35 per cent higher to 1,759.24 points from Wednesday’s close of 1,753,07 points, to close above its 50 day simple moving average.
This is mainly driven by key heavyweights such as Press Metal Aluminium Bhd, Malayan Banking Bhd and Malaysia Airport Holdings Bhd.
Shares of Iskandar Waterfront City Bhd (IWCB) led gains by the property counter, rising 30.70 per cent to 74.5 sen.
Ekovest Bhd, which led the construction counters’ gain after Fajarbaru Group Bhd, was the most active in Bursa Malaysia, with 165.34 million shares changed hands, an increase of 3,528 per cent from yesterday.
Other notable stocks yesterday incude HSS Engineers Bhd, IJM Corp Bhd, Gamuda Bhd and Mitrajaya Holdings Bhd.
Stock market analyst Nazarry Rosli said the positive market sentiment might have something to do with the possible revival of certain existing mega projects.
“The market must have 'sniffed out' something good as price action reflects everything,” he told NST Business.
Nazarry said the visits by the government to China and later Singapore had sparked hope among investors that the mega projects would be back.
"The market is anticipating positively on the very likelihood of the revival of mega projects from the visits by the governments,” he said.
Tun Daim Zainuddin, chairman of the Malaysian Council of Eminent Persons, is currently in Beijing to pave the way for Mahathir’s trip to China planned for next month.
It was reported that Economic Affairs Minister Azmin Ali will meet with Singaporean counterpart by the end of this month to discuss the Kuala Lumpur-Singapore High Speed Rail (HSR) project.
Damansara member of Parliament Tony Pua also reportedly said no companies had responded to the government's call for tender for the development of Bandar Malaysia.
This also possibly gives hope for IWCB to re-participate in the development of Bandar Malaysia.