KLCI ticks higher as regional rally stalls, gains seen limited

KLCI ticks higher as regional rally stalls, gains seen limited
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KUALA LUMPUR (Feb 10): The main index at Bursa Malaysia ticked higher in early trade Wednesday, ahead of the fourth quarter 2020 gross domestic product (GDP) data release by Bank Negara Malaysia on Feb 11, against the backdrop of stalling regional equity markets.

At 9.05am, the FBM KLCI was up 3.23 points to 1,589.36.

The early gainers included Nestle (M) Bhd, Carlsberg Brewery Malaysia Bhd, BIMB Holdings Bhd, Tasco Bhd, Fraser & Neave Holdings Bhd and RCE Capital Bhd.

Bloomberg said the global equity rally stalled Wednesday as investors mulled the potential for a stimulus-fueled rebound to trigger destabilizing inflation.

The dollar steadied after an overnight decline, it said.

Rakuten Trade said Wall Street took a breather following a series of record breaking performances as reality over valuations sink in.

It said while both the Dow Jones Industrial Average and S&P 500 closed slightly lower, the Nasdaq remained in positive territory.

“As for the local bourse, we believe the buying momentum to continue after breaking out from its consolidation yesterday.

“Therefore, we should see the FBM KLCI to test 1,590 thereafter around the 1,595 level today amid some degree of volatility as sentiments on glove counters remain rather fragile.

“Meanwhile, crude oil prices remained resilient with the Brent crude now firmly above the US$60 level hovering at US$61.10/barrel currently.

“For 2021, we expect Brent crude to possibly touch the US$65/barrel,” it said.