FBM KLCI extends gains after sell-down

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KUALA LUMPUR (Feb 8): The FBM KLCI extended gains as investors bargain hunted for beaten-down Malaysian shares after the recent global equity market sell-down. Today, Malaysian shares had also tracked Asian equities' rise.

At Bursa Malaysia, the KLCI opened 1.31 points or 0.1% higher at 1,837.99 points at 9am. At 9:03am, the KLCI was traded at 1,837.14 points. Across Asian share markets, Japan's Nikkei 225 rose 0.75% while South Korea's Kospi climbed 0.94%.

Yesterday, the KLCI rose 24.23 points to close at 1,836.68 points after falling 40.62 points on Tuesday. Malaysian shares fell on Tuesday with global equities amid higher US bond yield and US interest rate hike concerns.

In Malaysia today, TA Securities Holdings Bhd wrote in a note : "Stocks should stay range bound with profit-taking and selling stalling the rebound upside, and lingering worries over rising US bond yields and interest rates dampening market sentiment."

Reuters reported today that the 10-year U.S. Treasuries yield jumped back to 2.813 percent, near Monday's four-year peak of 2.885 percent. That is keeping investors nervous, with the prospects of rising interest rates around the world triggering a massive selloff in equities in the past few days. The rising costs of dollar funding is detrimental to firms not just in the United States but around the world.