KLCI up 0.3%, Asian markets rise on US equity gains

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KUALA LUMPUR (Oct 20): The FBM KLCI rose 4.83 points or 0.3% as Asian markets climbed. Global stock markets rose following US equity gains last Friday.

Today, Malaysia's KLCI was traded at 1,793.14 at 9.07am on gains in stocks like
SapuraKencana Petroleum Bhd and UMW Holdings Bhd.

Analysts expect the KLCI to extend gains following a 20.54-point or 1.16% rise last Friday.

Today, Hong Leong Investment Bank Bhd analyst Nick Foo Mun Pang wrote in a note : "On the back of last Friday’s Wall St relief rally and in anticipation of dwindling brokers’ force selling and margin calls activities (following KLCI’s 1.2% surge on 17 Oct), Bursa Malaysia is likely to witness an extension of a sustainable recovery this week."

Bursa Malaysia saw some 196 million shares worth RM88 million changed hands. There were  337 gainers versus 35 decliners.

The top gainer was United Plantations Bhd while leading decliner was British American Tobacco (M) Bhd. The most-active stock was Sumatec Resources Bhd.
 
Across Asia, Japan's Nikkei 225 jumped 2.7% while South Korea's Kospi added 1.27%
Austalia's S&P/ASX 200 was 1.06% higher.

Reuters reported that Asian stocks started the week on a brighter note on Monday, after solid US data and earnings calmed tumult in global financial markets and reassured investors worried about the health of the world economy.

The Thomson Reuters/University of Michigan index of consumer sentiment was surprisingly strong in early October, rising to more than a seven-year high. Other data also showed new housing starts rose more than expected last month, suggesting US economic growth was solid.

The upbeat US data has brought some calm to markets after a week of turbulence as signs of softening global growth rattled investors, sending volatility spiking to levels not seen in years.