KLCI gains 0.84% in line with regional rally

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KUALA LUMPUR (Dec 18): The FBM KLCI rose 0.84% in line with the rally at most regional markets while Main Market debutant Only World Group Holdings Bhd (OWG) made a muted entry to the loacl stock exchange.

At 10am, the FBM KLCI rose 14.40 points to 1,696.30.

The top gainers included British American Tobacco (M) Bhd, Fraser & Neave Holdings Bhd, Petronas Dagangan Bhd, United Plantations Bhd, Dutch Lady Milk Industries Bhd, Aeon Credit Services (M) Bhd, Tahps Group Bhd, Carlsberg Brewery (M) Bhd, Hong Leong Financial Group Bhd and Tenaga Nasional Bhd.

Sumatec Resources Bhd was the most actively traded counter with 49.42 million shares done. The stock rose 4.35% or one sen to 24 sen.

The other actives included newly-listed OWG that rose one sen to 89 sen.

Other actives included Perisai Petroleum Teknologi Bhd, Bumi Armada Bhd, Tiger Synergy Bhd and KNM Group Bhd.

The decliners included Asia File Corporation Bhd, KLCC Property Holdings Bhd, Genting Malaysia Bhd, Wing Tai Malaysia Bhd and Hartalega Holdings Bhd.

Asian share markets rallied on Thursday after U.S. stocks enjoyed their strongest session this year when the Federal Reserve sounded upbeat on the economy and promised to be patient in removing policy stimulus, according to Reuters.

The jitters of recent days also calmed a touch as Russia managed to stabilise its rouble, if only for now, and oil prices eked out a rare bounce. As risk aversion ebbed, U.S. bond yields rose and the dollar regained some lost ground, it said.

JF Apex Securities Research said U.S. stocks surged on Wednesday, with the Dow marking its best session of the year, as investors celebrated a rally in the energy sector and the Federal Reserve's pledge to be patient in raising interest rates.

Similarly, it said European shares closed higher yesterday, as banking stocks with a heavy exposure to Russia pared losses and energy stocks rebounded as oil prices recovered some ground.

“On the local exchange, the FBM KLCI gained 7.96 points or 0.48% yesterday to end at 1681.90 points.

“We expect local bourse to track the overnight gains in overseas markets with some bargain hunting activities on the recently bashed down stocks. Our immediate resistance level is at 1715 points,” it said.