KLCI likely muted on shorter trading day

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KUALA LUMPUR (Feb 18): The FBM KLCI is likely to be muted today on the shorter trading session on Bursa Malaysia ahead of the extended weekend for the Lunar New Year holidays, which also sees many regional markets shut as well.

The euro rebounded on Tuesday and global equity markets recovered to trade slightly higher on signs Greek banks will continue to receive emergency funding despite a breakdown in debt talks between Athens and euro zone finance ministers, according to Reuters.

U.S. Treasuries tumbled further while Wall Street rebounded on news Greece said it intended to ask Wednesday for an extension of its loan agreement with the euro zone that would be separate from a full bailout program, a source in Brussels said, it said.

The S&P 500 ended above 2,100 at another record high on Tuesday as optimism grew that a debt deal would be reached with Greece and as bond prices sold off, said Reuters.

With few fresh catalysts on the local front as well as the holiday-mood at most regional markets, investors at Bursa Malaysia will likely stay on the sidelines at least until trading resumes next week.

Malaysia and Singapore will trade half-day on Wednesday, then close through Friday. Indonesia and the Philippines will be shut on Thursday while Vietnam  is closed through Feb 23.