Wednesday, December 21, 2011

KLCI rebounds in early trade buoyed by Wall Street gains

Larger Smaller Reset KUALA LUMPUR (Dec 21): The FBM KLCI rose firmly in early trade on Wednesday in line with regional markets, buoyed by the strong overnight close at Wall Street.

Asian stocks and the euro rose on Wednesday after upbeat U.S. and German data and strong demand for Spanish debt, with investors' focus turning to a European Central Bank's tender as a gauge for euro zone funding strains, according to Reuters.

At 9.15am, the FBM KLCI rose 13.69 points to 1,478.86, lifted by blue chip counters.

Gainers led losers by 262 to 42, while 121 counters traded unchanged. Volume was 127.02 million shares valued at RM78.83 million.

BIMB Securities Research in a note Dec 21 said that a daily changeover in sentiments continues as investors are now more receptive to the European Central Bank's earlier policy to ease the liquidity crunch within the region.

Sentiments were further boosted from the much improved data from the US housing market, it said.

The research house said that equity markets surged with the Dow Jones Industrial Average making a 340 point gain to above the 12,000 mark again, adding that in Europe, most bourses were up nicely between 2-3%.

Regionally, Asian stocks close on a mixed note from a lack of fresh lead, it said.

'Nonetheless, with the strong performances overnight in Europe and the US, we anticipate an all- round improvement today and this to spillover to Malaysia after the local bourse saw some selling yesterday with the FBMKLCI down by almost 13 points to 1,465.

'We expect the benchmark index to recoup yesterday's losses and to re-test the 1,480 level today,' it said.

On Bursa Malaysia, gainers in early trade included PPB, HLFG, F&N, Genting, GD Express, KAF, BAT, Petronas Gas, Tradewinds PLANTATION []s and Maybank.

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