KLCI may edge up in line with global marts, AirAsia to be watched

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KUALA LUMPUR (Dec 29): The FBM KLCI could edge higher in post holiday trade today, but overall market sentiment could be dented by the still missing AirAsia jetliner that has evoked memories of the two earlier aircraft incidents this year involving Malaysian Airline System Bhd’s planes.

AirAsia Indonesia’s flight SQ8501 from Surabaya to Indonesia lost contact early Sunday morning, some 42 minutes into a scheduled two and a half hour flight.

Indonesia was set to resume at first light the search for an AirAsia plane carrying 162 people from the Indonesian city of Surabaya to Singapore, which went missing on Sunday just after the pilot requested a change in course to avoid bad weather, according to Reuters.

Singapore said it had sent two naval vessels to help the Indonesian military look for the Airbus A320-200 operated by Indonesia AirAsia, adding a C-130 air force plane took part in the search on Sunday, it said.

U.S. stocks pushed higher on Friday and major indexes hit new records, while oil and natural gas fell on worries of a supply glut and on mild U.S. weather.

The three major U.S. stock indexes were on track for a second straight weekly advance and all 10 S&P 500 industry sectors were higher on the day. Trading was light, however, said Reuters.

At the local bourse, while general sentiment improved on window-dressing and bargain hunting last Friday, the momentum could be short-lived and investors could take a year end breather, thus paving way for the local index to pause ahead of another holiday-shortened trading week.

Trading volume is expected to be thin, in line with most global markets.