KUALA LUMPUR (Dec 24): The FBM KLCI could extend its gains today amidst thin trade, on the back of the firm overnight close at most global markets following a strong report on US economic growth.
However, the gains at the local bourse could be pyrrhic as evident from the drop in the benchmark index’s market capiralisation in December, with some RM85.81 billion being wiped out between Dec 1 and Dec 23.
U.S. and European shares rose on Tuesday, with the Dow industrials ending above 18,000 for the first time after an unexpectedly strong report on U.S. economic growth supported risk appetite and lifted oil prices, according to Reuters.
Both the Dow and the S&P 500 hit record closing highs after the Commerce Department said the final estimate of U.S. gross domestic product for the third quarter was revised up to a 5 percent annual pace, its quickest in 11 years, from 3.9 percent reported last month. Stronger consumer and business spending fueled the surge, it said.
Over at Bursa Malaysia, being the eve of the Christmas holiday as well as year –end vacation period, retail investors could stay on the sidelines, leaving institutional buyers to help support the local marketa with possible buying of index heavy weights and select blue chips.
The FBM KLCI could remain above the crucial 1,700 point level at least until the year end, riding on the global euphoria.