Malaysian stocks seen tracking Asian market gains

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KUALA LUMPUR (Oct 17): Malaysian stocks may track Asian market gains today after global equity futures rose. Equity futures climbed on expectation that US policy makers may delay the conclusion of the country's quantitative easing (QE) programme.

The QE has led to capital flows into emerging Asian markets like Malaysia.

Yesterday, Malaysia's FBM KLCI fell 19.07 points or 1.07% to close at 1,767.77. Overnight, the US' Dow Jones Industrial Average fell 0.15% although the S&P 500 and Nasdaq Composite gained 0.01% and 0.05% respectively.

In Malaysia, analysts, however, said they were still mindful of further profit taking in the local stock market.
AllianceDBS Research Sdn Bhd wrote in a note that the KLCI might extend losses today.  This took into account selling pressure was stronger than buying power in the stock market.

Alliance said the KLCI had earlier declined as "market participants rushed to unload their stocks in anticipation of a lower market."

Across Asia, Bloomberg reported that US and Japanese index futures climbed after a Federal Reserve official spoke in favor of delaying the end of its bond-buying program and American data soothed concern over the global economy.

Standard & Poor’s 500 Index futures gained 0.3 percent by 7:48 a.m. in Tokyo after the benchmark US gauge erased a drop of as much as 1.5 percent to end the session up less than 0.1 percent. Nikkei 225 Stock Average futures in Chicago climbed 0.2 percent as Australia’s S&P/ASX 200 Index added 0.3 percent.