KUALA LUMPUR (Dec 4): The FBM KLCI edged up in erly trade in line with the uptick at most regional markets, but local sentiment remained wary as downside risk stayed apparent.
At 9am, the FBM KLCI rose 2.10 point to 1, 760.25.
The top gainers included United Plantations Bhd, UMW Holdings Bhd, MBM Reources Bhd,AMMB Holdings Bhd,Hong Leong Financial Group Bhd, Coastal Contracts Bhd, Tenaga Nasional Bhd, Genting Bhd and SapuraKencana Petroleum Bhd.
Regionally, Asian stocks edged higher on Thursday as fresh signs of resilience in the U.S. economy offset some of the gloom over a weakening global outlook, while the euro wallowed near two-year lows before a much-anticipated European Central Bank meeting,according to Reuters.
Tokyo's Nikkei rose 0.8 percent, with sentiment buoyed by media projections suggesting a strong win for Japanese premier Shinzo Abe's coalition at the Dec. 14 election. A victory for Abe could lead to a new mandate for his "Abenomics" economic policies, it said.
M & A Securities Research head Rosnani Rasul in a market preview Thursday said Wall Street zoomed higher yesterday driven by optimistic economic outlook and relatively sanguine economics releases.
She said the S&P 500 and DJIA smashed historic high again after gaining by 7.78 (0.38%) and 33.07 (0.18%) points to end at 2,074.33 and 17,912.62 respectively.
Rosnani said the Fed reported consumers spending in the US for the month of October and November has elevated thanks to the weakening pump prices, which jacked up the mood to spend, suggesting that the US 4Q14 GDP may be as equally hot as 3Q14, if not better.
“Hence, we predict this Christmas season may be one of the US’ best since the last few years,” she said.
She said all data announced suggested that the US economic competitiveness had sharpened and poised to lift the world’s growth again.
“On this side of the world, the impact of weak crude oil price along with the unexpected cut in Petronas capex next year may still weigh on the bourse performance today especially when there is no solid catalyst can be seen.
“At this stage, the downside risk to the index is still apparent given the diminishing risk tolerance by the investors,” she said.