KUALA LUMPUR (Dec 18): The FBM KLCI edged up in early trade in line with its regional counterparts but Main Market debutant Only World Group Bhd Holdings Bhd (OWG) made a muted entry to the local stock exchange.
At 9am, the FBM KLCI gained 6.13 points to 1,688.03.
The top gainers included Malaysian Pacific Industries Bhd, Aeon Credit Services (M) Bhd, Petronas Dagangan Bhd, AMMB Holdings Bhd, Press Metal Bhd, British American Tobacco (M) Bhd, Inari Amertron Bhd and Bursa Malaysia Bhd.
OWG was the most actively traded counter with 2.15 million shares done. Teh stock was flat at its IPO price of 88 sen.
Asian shares rallied on Thursday after U.S. stocks enjoyed their strongest session this year when the Federal Reserve sounded upbeat on the economy and promised to be patient in removing policy stimulus, according to Reuters.
The jitters of recent days also calmed a touch as Russia managed to stabilise its rouble, if only for now, and oil prices eked out a rare bounce. As risk aversion ebbed, U.S. bond yields rose and the dollar regained some lost ground, it said.
M & A Securities research head Rosnani Rasul in a market preview Thursday said Wall Street performance reversed with a vengeance on Wednesday energized by the new policy communication tool embarked the US Federal Reserve (Fed).
She said the S&P 500 and DJIA made their best gains of the year after raking in 40.50 (2.04%) and 288 (1.69%) points to end at 2012.89 and 17,356.87 respectively.
Rosnani said the US Federal Reserve issued its policy statement yesterday and for the first time used the word ‘patience’ indicating that it will take its time before hiking interest rate.
She said this certainly was the tonic needed by the global equity market which has been suffocating with the fact that the Fed may start increasing interest rate sooner than later given the strength of the US economy.
“The cherry of the icing is that the Fed said that it will not make adjustment in policy rate for the next few meetings.
“The fair performance of the oil price also helped sentiment with both WTI and Brent made some good advances.
“That said, we expect the local and regional equity market to make vengeful gains today,” it said.