KLCI adds 3.81pts on U.S. optimism, crude oil

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KUALA LUMPUR (Oct 6): The FBM KLCI added 3.81 points or 0.2% on crude oil prices at above US$50 a barrel and stronger U.S. services sector numbers.

At 5 p.m., the KLCI closed at 1,666.73 points. Share gains in blue chips like AMMB Holdings Bhd and Genting Malaysia Bhd, supported the KLCI’s positive performance.

Across Bursa Malaysia, 1.8 billion shares, worth RM1.73 billion, were traded. There were 355 gainers and 402 decliners.

Reuters reported Asian shares firmed on Thursday, thanks to stronger U.S. economic data, while growing prospects of a near-term U.S. rate hike and possible tapering of stimulus in Europe, hit gold and lifted the dollar to one-month highs versus the yen.

In the U.S., the Institute of Supply Management (ISM) said on Wednesday that its non-manufacturing activity index surged to a reading of 57.1 in September.

In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that Asian shares had tracked U.S. equities' overnight gains.

Wong said U.S. markets were buoyed by the ISM non-manufacturing index and crude oil prices. “And all these good news brought a spill-over effect to this side of the world,” he said.

He said higher crude oil prices were definitely good for the Malaysian Government, which derived a substantial portion of its revenue from crude oil.

“It would definitely ease the budget burden, going forward. If crude oil can now reach US$55 dollars (a barrel), this would bring some cheer to Malaysia,” he said.