KUALA LUMPUR: The KL Composite Index surged past the key resistance 1,000 level in early trade on May 4, as investors’ risk appetite improved, supported by strong buying interest in bank stocks and Tanjong.

At 10.09am, the KLCI was up 16.82 points or 1.67% to 1,007.56. Turnover was 498.2 million shares valued at RM351.64 million.

Hong Kong’s Hang Seng Index opened 2.2% higher at 15,866.23, the Nikkei 225 rose 1.69% to 8,977.37 and the Shanghai Composite Index 1.35% up at 2,511.04. Singapore’s Straits Times Index advanced 1.77% to 1,954.36.

Emerging-market stocks may “break out” into a bull market at the end of the year as falling interest rates and easing inflation make equities more attractive, Templeton Asset Management Ltd.’s Mark Mobius said, according to Bloomberg.

Meanwhile, Kenanga Investment Research said its positive bias on the market remained unchanged in the medium term. All technical indicators continuing to point northwards with investor psychology firmly trained towards the bullish as risk appetite improves on the back of a more benign overseas market condition as well as a general expectations that the worst could have been behind.

“The short and shallow pullback during the previous week clearly indicated that the bullish momentum is intact with investors taking every opportunity to buy on the dip. Positives for the market including seasonality, a return of risk assumption as well as the slosh of liquidity that is in the system should likely to keep the equity market buoyant,” it said.

Kenanga Research said upside targets remained to be the psychological 1,000 mark with 1,015 – 1,028 as next possible targets. The support remains firmly in place at the 950 – 960 levels in the near term with 933 as next.

“Strategy wise, we remain long for the longer term mandates and will let the profit run while traders will likely to have a field day given the current level of volatility,” it added.

KNM was the most active with 67.13 million shares done, rising two sen to 59.5 sen while Ramunia rose three sen to 64.5 sen.

BAT was the top gainer, rising RM1 to RM45.50, Shell 65 sen to RM10.50 while BCHB rose 55 sen yo RM8.60 and Tanjong 40 sen to RM14.50. Pubouic Bank gained 25 sen to RM8.60, Top Glove 20 sen to RM5.75 and Petronas Gas 20 sen to RM9.60.

DiGi fell the most, down 30 sen to RM22 while United Plantations eased 10 sen to RM10.60 and IGB seven sen to RM1.73.