KUALA LUMPUR (April 18): The FBM KLCI climbed 6.67 points or 0.4% after US equities' overnight gains and as investors closely watched Malaysian corporate financials.
At 5pm, the KLCI settled at 1,740.60 points after reaching its intraday high at 1,741.51 points. In overnight US share trades, the Dow Jones Industrial Average climbed 0.9%, S&P 500 added 0.86% while Nasdaq Composite was 0.89% higher.
Reuters reported that US stocks bounced back on Monday after the S&P 500 closed the previous session at a two-month low, in a broad rally led by recently beaten-down bank and technology shares.
It was reported that market focus shifted from geopolitical tension to earnings, with several Dow components, including Goldman Sachs, General Electric and Johnson & Johnson, scheduled to release results later this week.
In Malaysia, TA Securities Holdings Bhd wrote in a note earlier today that "while the overnight Wall Street rebound may support further recovery on the local market today, gains may be capped by the cautious tone underpinned by persisting geopolitical tensions in North Korea and Syria."
Investors are also closely watching Malaysia's January-to-March quarter corporate financials at the start of the reporting season this month (April) although most companies announce their earnings in May.
Today, Bursa Malaysia saw 2.79 billion shares worth RM2.45 billion traded. There were 552 gainers versus 327 decliners.
A notable increase, in percentage terms, was seen in Bursa Malaysia's technology index, which rose 0.85 point or 2.78%.
Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com that Bursa Malaysia technology shares were deemed expensive at current levels.
“The speed of the climb among the tech stocks over the past three to four months made it difficult to make a case that they will remain bullish, but making them more expensive to invest rather,” Pong said.
Source: The Edge