KLCI gains 0.5% on technical rebound



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KUALA LUMPUR (Dece 17): The FBM KLCI gained 7.96 points or 0.48% on technical rebound, after closing lower for the past four days. The KLCI's performance came amid worries of a financial crisis in Russia, while oil prices remained low.

Malaysia's KLCI settled at 1,681.90 points at 5pm. The KLCI advanced on gains in stocks like PPB Group Bhd and Petronas Dagangan Bhd.

Datuk Nazri Khan, vice president of AffinHwang Investment Bank Bhd, said the market staged a rebound as signs of stabilisation were seen in prices of commodities and the ringgit.

The KLCI had rebounded after falling 23.27 points yesterday (Tuesday, Dec 16). On Monday (Dec 15), the index dropped 35.68 points.

Today, Nazri told theedgemarkets.com: "There are signs of a rebound today. This could be because the market is in an oversold condition."

“We still believe that the market needs to do more, before we are optimistic on the market. So far, we haven’t seen the market bottoming-out yet,” he said.

Across Bursa Malaysia, 1.94 billion shares, valued at RM2.06 billion, were traded. Gainers beat decliners at 648 against 257, while 228 counters were unchanged.

Leading the gainers were United Plantations Bhd, Shangri-La Hotels (M) Bhd and Latitude Tree Holdings Bhd. Meanwhile, Dutch Lady Milk Industries Bhd led decliners.

The most actively-traded stock was oil and gas entity, Sumatec Resources Bhd.

Asian markets were mixed. Japan’s Nikkei rose 0.38%, Hong Kong’s Hang Seng retreated 0.37%, while South Korea’s Kospi fell 0.21%.

An uneasy hush settled over Asian markets on Wednesday, as a brewing financial crisis in Russia and the rout in oil prices, sent investors scurrying for the cover of top-rated bonds, reported Reuters.

Yields on British, German and Japan sovereign debt had all hit record lows, while long-dated U.S. and Australian yields reached their lowest since 2012.