Malaysian stock market surges back, reversing losses

KUALA LUMPUR - The Malaysian stock exchange surged to an all-time intra-high of 1,700.55 points, or 0.9 per cent, at 9.08 am, reversing the losses made from Wednesday's knee-jerk reaction from Prime Minister Najib Razak's Parliament dissolution announcement.

Trading at the Kuala Lumpur Composite Index was volatile in the early trade and had slumped to a low of 1,678.77 points shortly after the market opened before buying activities picked up pace.

The stock market fell back to the region of more than 1,680 points at 10.50 am.

According to local reports, the foreign funds were the net buyers of the counters, acquiring RM392.5 million (S$156 million) worth of stocks this morning. However, local investors were net sellers in the stock market.

Leading the surge in the stock market were blue-chip counters including British American Tobacco (Malaysia) Bhd which gained 58 sen to RM65.48 and Sime Darby Bhd which rose 18 sen to RM9.44.

The Malaysian stock exchange fell sharply Wednesday morning ahead of Prime Minister Najib's call to dissolve Parliament but pared down all losses for the day when it ended flat, supported by cash-rich institutional funds.