KLCI extends gains in line with regional uptrend, stays above 1,600 level

KLCI extends gains in line with regional uptrend, stays above 1,600 level
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KUALA LUMPUR (Feb 16): The main index of Bursa Malaysia extended its gains in early trade on Tuesday, tracking the advance in regional markets.

At 9.05am, the FBM KLCI was up 1.38 points to 1,609.45.

The early gainers included Malaysian Pacific Industries Bhd, Genetec Technology Bhd, Widetech (Malaysia) Bhd, Muda Holdings Bhd, EP Manufacturing Bhd, Ark Resources Holdings Bhd and Malaysia Smelting Corp Bhd.

Bloomberg said stocks advanced in Asia on Tuesday and bonds declined further as investors took comfort from progress on the Covid-19 vaccine roll-out.

Oil held an overnight gain as freezing temperatures in Texas roiled energy markets, it said.

Rakuten Trade said Wall Street was closed for President’s Day yesterday.

Nonetheless, it said optimism on US equities remain high with all three major indices futures currently trading at positive territory with the Dow Jones Industrial Average futures now almost 180 points higher.

“Thus, we expect regional markets to trend higher today buoyed by sustained buying momentum.

“On the local front, yesterday’s uptrend was broad-based hence we believe liquidity to continue playing its part to support the FBM KLCI today.

“Therefore, we reckon the index to breach the 1,615 level today which formed a formidable resistant yesterday.

“We could be in for a post Chinese New Year Rally. Meanwhile, crude oil prices and crude palm oil (CPO) prices continue to stay solid with the Brent staying lose to the US$64 (RM258.14)/barrel while the CPO is hovering near the RM4,000/metric ton,” it said.