Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Feb 16): The FBM KLCI edged up in early trade on Monday but was expected to remain sideways in a holiday-shortened trading week.

At 9am, the local index added 3.99 points to 1,804.94.

The early gainers included British American Tobacco (M) Bhd, Kawan Food Bhd, Signature International Bhd, One Worl Group Holdings Bhd, RHB Capital Bhd, VS Industry Bhd, MKH Bhd. Vitrox Corporation Bhd, Carlsberg Brewery (M) Bhd and Tenaga Nasional Bhd.

Most Asian share markets were fractionally higher on Monday following a record close on Wall Street, with investors cautiously optimistic the European Union would make progress this week on a debt deal with Greece, according to Reuters.

Oil prices extended their bounce as Brent topped US$62 a barrel, while the major currencies stayed locked in recent tight ranges, it said.

M & A Securities research head Rosnani Rasul in a market preview Monday said Wall Street had a ball last Friday with S&P 500 reaching new high while DJIA touched the crucial 18,000-mark for the first time this year, boosted by better-than-expected Eurozone 4Q14 GDP and the bottoming of crude oil price while at the same time shrugging off the nervousness arising from Greece new debt deal. S&P 500 and DJIA added 8.51 (0.41%) and 46.97 (0.26%) points to end at 2,096.99 and 18,019.35 respectively.

She said the Eurozone clocked-in marginally better-than-expected 4Q14 GDP that jumped by 0.3% against the consensus of 0.2%, lifted by 0.7% expansion in Germany from the expectation of 0.3% growth.

As for Greece, Rosnani said the new debt deal can be expected this week as the government along with its Eurozone creditors are racing to meet the 28th February deadline.

She said the inking of new deal may lift the market sentiment as one of its biggest risks may be averted for now.

As for oil, Rosnani said the trajectory of Brent which had surpassed US$60 per barrel level to finish at US$62 per barrel last Friday may shore up market sentiment today as it may indicate that oil price has bottomed out for now although we to forewarn that the downside risk is still there given the upcoming US policy hike plan.

“Note that the US market will be closed on Monday in observance of the Presidents Day and hence, market signals may be derived locally and from the Europe market.

“In any case, the holiday shortened week this week may affect the local market trading mood unless Greece manage to get a new sweet heart debt deal much earlier than expected.

“Otherwise, we expect trading momentum to be soft, likely to trade sideways until Wednesday,” she said.

      Print
      Text Size
      Share