KLCI up 14pts/0.8% on technical rebound, tracks Asian markets


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KUALA LUMPUR (Oct 20): The FBM KLCI rose 14.24 points or 0.8% on technical rebound as Asian markets advanced. World markets took the cue from the rise in US equities last Friday following a more optimistic outlook on the world's largest economy.

Today, Malaysia's KLCI settled at 1,802.55 at 12.30pm. The rise came on gains in stocks like SapuraKencana Petroleum Bhd and Kuala Lumpur Kepong Bhd.

"Given the extreme oversold technical condition sparked by the selloff in the past two weeks, the KLCI is ripe for an oversold rebound this week. Nonetheless, with most technical momentum and trend indicators still stuck in bearish territory, the rebound could stall on weak buying momentum, TA Securities Holdings Bhd wrote in a note today.

"Increasing worries over the health of the world economy and fears on the Ebola outbreak should continue to cloud investor sentiment," it added.

Bursa Malaysia saw 1.17 billion shares worth some RM923 million changed hands. There were 589 gainers versus 177 decliners.

The top gainer was United Plantations Bhd while leading decliner was Asia Brands Corp Bhd. The most active stock was Sumatec Resources Bhd.
Across Asia, Japan's Nikkei 225 jumped 3.54% while Hong Kong's Hang Seng added 0.41%.
South Korea's Kospi added 1.5%

Reuters reported that Japanese stocks led a rally in Asia 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 roiled investors and sent volatility spiking.