KLCI likely to trend higher on improved global sentiment

-A +A

KUALA LUMPUR (Feb 23): The FBM KLCI is lilkely to open positive today in line with the improved sentiment at global markets following the deal reached to resolve Greece’s financial rescue.

The euro rebounded against the dollar and equity markets around the globe surged to record highs on Friday after euro zone finance ministers agreed in principle to extend heavily indebted Greece's financial rescue by four months, according to Reuters.

Investors had awaited a deal all week. As talks for a deal progressed, Germany's DAX index hit a record intraday high and Britain's top share index closed within 0.5 percent of a 15-year high before the accord was announced, it said.

The Dow and S&P 500 ended at record highs on Friday while the Nasdaq notched an eighth straight day of gains after Greek and euro zone finance ministers reached a deal to extend heavily indebted Greece's financial rescue by four months, said Reuters.

The FBM KLCI could take the lead from the close at most global markets and Wall Street last Friday when the local bourse resumes trade after the extended break for the Lunar New Year last week.

However, the gains could be limited given the lack of fresh corporate developments at the local market.