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Thursday, December 14, 2017

Market Daily Report: FBM KLCI up 1.23%; Bursa finance index rises 2.38%

KUALA LUMPUR (Dec 14): The FBM KLCI rose 21.34 points or 1.23%, lifted by banking stocks amid fund managers' year-end window dressing.
At 5pm, the KLCI closed at 1,759 points as Public Bank Bhd, Hong Leong Bank Bhd and Hong Leong Financial Group Bhd ended among Bursa Malaysia top gainers. Bursa Malaysia's finance index rose 387.95 points or 2.38% to 16,656.80 points.

Across Bursa Malaysia, there were 540 gainers versus 331 decliners. Trading volume was 2.43 billion shares worth RM3.26 billion.

CIMB Investment Bank Bhd analyst Nick Foo Mun Pang told "Year-end window dressing will continue to lift KLCI in the near term. Market breadth was very strong today as well. Our immediate (KLCI) resistant level is 1,770 points, immediate support is 1,750 points."

"The sentiment was good as well, especially in the afternoon after The World Bank upgraded (its 2017) Malaysia gross domestic product (growth forecast) to 5.8%," Foo said.

Earlier today, analysts and remisiers said Malaysian banking shares rose on expectation that Bank Negara Malaysia will raise interest rates following the US Federal Reserve's interest rate hike on Wednesday.

Reuters reported that the US central bank raised rates by a quarter of a percentage point to a range of 1.25% to 1.5%. It was the third rate hike this year. But the Fed's forecast of three additional rate increases in 2018 and 2019 was unchanged from its projections in September.

In Malaysia, SJ Securities Sdn Bhd senior remisier Goh Kay Chong told that technical charts are showing that funds are buying Malaysian banking shares following the US interest rate increase as they expect Bank Negara to follow the US's footsteps.

"That way, Public Bank and all other local banks will benefit from the higher interest rate," Goh said.

Source: The Edge

Wednesday, December 13, 2017

Market Daily Report: FBM KLCI up 0.5% ahead of US rate decision

KUALA LUMPUR (Dec 13): The FBM KLCI finished 8.09 points or 0.5% higher, possibly on fund managers' year-end window dressing ahead of the US interest rate decision today.

Malaysian shares had tracked Asian equity gains after US stocks closed at record highs overnight on Tuesday.

At 5pm today, the KLCI settled at 1,737.66 points as index-linked stocks Hong Leong Financial Group Bhd and Genting Bhd rose among Bursa Malaysia top gainers.

"It is quite obvious that there are some forms of window dressing happening today, as there seems to be no particular positive news going on," a remisier told

FXTM research analyst Lukman Otunuga wrote in a note today: "Much attention will be directed towards the (US) FOMC (Federal Open Market Committee) policy statement on Wednesday, which has the ability to impact gold's trajectory this week. While it is widely expected that the Federal Reserve will be raising US interest rates, much focus is likely to be directed towards the tone of the meeting."

Across Bursa Malaysia, trading volume was 2.51 billion shares worth RM2.58 billion. There were 532 advancers and 327 decliners. The top gainer was Hengyuan Refining Co Bhd while the leading decliner was United Plantations Bhd.

Among Asian bourses, Hong Kong's Hang Seng was up 1.49% while South Korea's Kospi ended 0.79% higher as global markets eyed US stocks record closing highs ahead of the US interest rate decision today (Wednesday).

Overnight, Reuters reported that the S&P 500 and the Dow industrial registered record closing highs on Tuesday with a boost from bank stocks as investors eyed a potential cut in US corporate taxes and continued economic growth after strong inflation data.

The Dow Jones Industrial Average rose 118.77 points or 0.49% to 24,504.8, the S&P 500 gained 4.12 points or 0.15% to 2,664.11 and the Nasdaq Composite dropped 12.76 points or 0.19% to 6,862.32.

Source: The Edge