KUALA LUMPUR (Dec 23): The FBM KLCI edged up in early trade on Tuesday, in line with the firmer overnight close at Wall Street and most global markets.
At 9am, the FBM KLCI gained 1.37 points to 1,745.42.
The top gainers in early trade included UMW Holdings Bhd, Petronas Dagangan Bhd, Hong Leong Bank Bhd, LPI Capital Bhd, Media Prima Bhd, Globetronics Technology Bhd, Public Bank Bhd, Berjaya Sports Toto Bhd, Telekom Malaysia Bhd and MMC Corporation Bhd.
Asian markets should be well underpinned on Tuesday after Wall Street closed at historic highs while oil prices suffered a vicious setback after Saudi Arabia quashed all thought of cutting supply, according to Reuters.
The revival in risk appetites undermined the safe haven yen and kept the U.S. dollar elevated across the board, while sovereign bonds were content to consolidate recent gains, it said.
Equity investors chose to focus on the benefits that falling fuel prices would have for consumer spending power, said Reuters.
JF Apex Securities Research in a market preview Tuesday said U.S. stocks rose overnight with technology leading the Dow and S&P 500 to record highs.
Similarly, it said European shares ended higher with sentiment boosted by a rebound in the Russian ruble . However, earlier gains in the oil price reversed, pressuring energy stocks.
“On the local market, the FBM KLCI rallied 28.06 points to 1744.05 points.
“Asian stocks appear set for a lower open today, despite another strong session on Wall Street, as oil prices resumed their downward slide.
“We expect the FBM KLCI to take a breather but remain above the psychological level of 1,700 points,” it said.