KUALA LUMPUR (Dec 3): The FBM KLCI edged up marginally in early trade on Wednesday in line with most regional markets, but its gains were seen limited as investors may stay on the sidelines pending clearer earnings visibility
At 9.01am, the FBM KLCI was up 2.42 points to 1,789.04.
The top gainers in early trade included British American Tobacco (M) Bhd,United Plantations Bhd, Hong Leong Bank Bhd,Petronas Gas Bhd, Malaysia Airports Holdings Bhd, UMW Holdings Bhd, Hartalega Holdings Bhd, Tenaga Nasional Bhd and UMW Oil & Gas Corporation Bhd.
Regionally, Asian shares and the dollar got off to a steady start on Wednesday, while oil prices recovered after data showed a drop in U.S. supply, according to Reuters.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat, while Japan's Nikkei stock average added 0.6 percent in early trade, after marking a seven-year closing high on Tuesday,it said.
M & A Securities research head Rosnani Rasul said Wall Street rebounded on a thin trading volume as M&A activity became the supportive factor.
She said the S&P 500 and DJIA gained 13.11 (-0.64%) and 102.75 (0.58%) points to end at 2,066.55 and 17,879.55 respectively, only a few points short to their all time high 2,072 and 17,827 level.
Rosnani said oil price (WTI) ended yesterday’s trading at US$1 lower to settle at US$68 per barrel while Brent dropped further to US$70 per barrel from US$72 previously.
She said that at this stage, oil price was still susceptible to rumour mongering and hence, a selling pressure as a result, putting more pressure to the local oil players stock price movement.
“Ringgit, in the meantime, has stabilised at RM3.43 per Dollar, unchanged against yesterday.
“At this juncture, lack of catalyst along with uncertainty emanating from the oil price movement and direction of Ringgit may affect investors risk tolerance in our view.
“There is a good chance that investors may stay at the sideline pending clearer visibility and hence, suggesting a sideways trading pattern today,” she said.