KUALA LUMPUR (Oct 20): The Malaysian stock market may extend gains today after US equities' rise last Friday led to higher Asian stock futures.
Last Friday, Malaysia's FBM KLCI rose 20.54 points or 1.16% to close at 1,788.31 on a technical rebound. The rebound followed substanial losses in the KLCI in recent days.
Overnight, the US' Dow Jones Industrial Average climbed 1.63%, S&P 500 advanced 1.29% while Nasdaq Composite was 0.97% higher.
Today, analysts said the KLCI's technical rebound may continue on stronger buying power in the local stock market.
"The analysis of overall market action on 17 Oct 2014 (Friday) revealed that buying power was stronger than selling pressure. As such, FBM KLCI would likely trade above the 1,799.29 level on 20 Oct 2014," AllianceDBS Research Sdn Bhd wrote in a note.
Bloomberg reported that US and Japanese index futures climbed while the yen extended its decline after global stocks halted their slide and a report indicated Japan’s pension fund will boost investment in shares.
Futures on the Standard & Poor’s 500 Index rose 0.5% by 7:27 a.m. in Tokyo after the US gauge jumped 1.3% Oct. 17, trimming a fourth straight weekly drop. Nikkei 225 Stock Average futures gained 0.4% in Chicago. The NZX 50 Index climbed 0.6% in Wellington as New Zealand bonds fell.