THE FBM KLCI ended higher on Tuesday at 1,787.9 after closing marginally lower for the past two days. However, market breadth was negative with losers outpacing gainers nearly 2-1.

The ringgit stayed at RM3.70 against the greenback, near the previous lows in March 2009.

Most regional markets closed stronger following positive lead from US stocks overnight. The Dow Jones added 1.29% to close at 17,977.4 on Monday, while the S&P 500 index gained 1.35% to end at 2,081.2.

Sentiment improved following a halt to the dollar’s rise, though likely temporarily, thus easing investors’ worries of its effect on corporate profits.

European stock indexes were, however, down in early trade on Tuesday.

All eyes will be on the US Federal Reserve’s 2-day policy meeting starting Tuesday. Investors will no doubt dissect the Fed’s wordings for any clue as to when it will likely raise interest rates. US economic data have been a mixed bag in recent weeks but the latest labour market report, which is a key factor, has been stronger than expected.

Elsewhere, Australia’s central bank said that it is open to more interest rate cuts going forward while the Bank of Japan is also widely expected to maintain its record monetary stimulus.

I did not undertake any transactions yesterday.

I continue to hold Supercomnet Technologies Bhd (unchanged) and Focus Lumber Bhd (+0.7%).

My portfolio, which started with RM100,000 has a total value of RM99,242.20 since inception, and is down 0.8%. However, it has still outperformed the FBM KLCI by 4.8%.

This article first appeared in The Edge Financial Daily, on March 18, 2015.