KUALA LUMPUR (Jan 22): The FBM KLCI rose 12.47 points or 0.8% after Bank Negara Malaysia announced a cut in the banking sector's statutory reserve requirement (SRR) ratio from 4% to 3.5%.

Analysts said the SRR cut, effective this Feb 1, would increase liquidity in the market. At 9:03am today, the KLCI rose to 1,613.39, also helped by crude oil and Asian share gains.

Investors could also have bargain hunted for beaten-down Bursa Malaysia stocks after the KLCI fell 17.91 points yesterday.

Today, Hong Leong Investment Bank Bhd analyst Nick Foo Mun Pang wrote in a note crude oil and US share gains besides Bank Negara's move to cut the SRR ratio "may boost sentiment" on Malaysian equities.

Asian shares rose. Japan's Nikkei 225 added 3.52% while South Korea's Kospi climbed 1.89%.

Bloomberg reported that Asian stocks rose, with the regional benchmark index rebounding from a three-year low, following a rally in US shares and oil amid optimism that policy makers in Europe and Asia will step in with more stimulus measures.

Reuters reported that front-month West Texas Intermediate crude futures were trading at US$29.82 per barrel at 0056 GMT, up 29 cents from their last settlement and over US$3.50 above 2003 lows reached earlier this week.

At Bursa Malaysia, some 85 million shares worth RM34 million changed hands. There were 272 gainers versus 54 decliners.

Top gainer was Petron Malaysia Refining & Marketing Bhd while United Plantations Bhd led decliners.

Most-active stocks included Instacom Group Bhd and SapuraKencana Petroleum Bhd.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)