KUALA LUMPUR (February 4): The FBM KLCI tapered gains for a 23.50 points or 1.32% rise following overnight US markets gains and crude oil price rebound.

At 12.30pm, the KLCI settled at 1,804.76 points. The index earlier reached a high of 1,831.41 before investors took profit.

In a note today, Maybank Investment Bank Bhd advocated profit-taking on rallies for the week, based on the current market conditions.

“With the plunge from the 1,896.23 high to the low of 1,671.82, we advise clients to trade within the stipulated support and resistance zones.

“Take short-term profits at the resistance areas of 1,781 to 1,896. The support levels of 1,718 and 1,770 will witness minor nibbling activities,” said Maybank.

The bourse saw 1.36 billion shares worth 1.39 billion traded, with 434 gainers against 335 decliners.

Top gainers included British American Tobacco (M) Bhd, Nestle (M) Bhd and Petronas Dagangan Bhd.

Meanwhile Hong Leong Capital Bhd led decliners. The most-active stock was Nexgram Holdings Bhd.

The market also kept a close watch on the ringgit which, at 12.40pm, firmed up to 3.5545 against the US dollar

Compared to the Singapore dollar, the ringgit was traded at 2.6436.
 
The ringgit's strength was seen due to higher prices of crude oil, which constitutes a crucial portion of the Malaysian economy.

Asian shares advanced. Japan’s Nikkei 225 rose 2.2%, South Korea’s Kospi gained 0.8% while Hong Kong’s Hang Seng increased 0.9%.

Reuters reported that Asian share markets followed Wall Street higher on Wednesday as revived risk sentiment dented the U.S. dollar and sovereign bonds, though it was far from clear how long the sudden mood swing would last.

Much might depend on whether oil can sustain its recent rally, thus helping to underpin energy stocks and lessen fears of global deflation.

Reuters reported oil prices fell on Wednesday as renewed concerns over global demand and high stock levels halted a rally that pushed up prices by about 19 percent over the past four sessions.