KUALA LUMPUR (Jan 8): The FBM KLCI snapped its losing streak in early trade on Thursday, in line with the gains at most regional markets and the higher overnight close at US and European markets.
At 9am, the FBM KLCI rose 5.22 points to 1,714.40.
The top gainers included Petronas Gas Bhd, United Plantations Bhd, Hong Leong Financial Group Bhd, PPB Group Bhd, My E.G. Services Bhd, RHB Capital Bhd, Public Bank Bhd, MISC Bhd, Berjaya Auto Bhd and Puncak Niaga Holdings Bhd.
Asian stocks gained on Thursday after upbeat U.S. employment data tempered investor risk aversion that had pummelled global equities this week, while the euro held near a nine-year low, accirding to Reuters.
Hopes that the European Central Bank will embark upon bolder stimulus after data showing the euro zone had slipped into deflation also shored up risk assets, hit this week by concerns over tumbling oil prices and global economic weakness, it said.
M & A Securities research head Rosnani Rasul in a market preview Thursday said Wall Street was breathing again after suffocating in the last few sessions.
She said it had a ball on Wednesday courtesy of a few surprising factors.
Rosnani said the S&P 500 and Dow Jones Industrial Average added a good 23.29 (1.16%) and 212.88 (1.23%) points to end at 2,025.90 and 17,584.52 respectively.
“First of all, it was reported that private employment in the US added more workers in December than expected after the numbers came in at 214,00 against the consensus of 230,000, suggesting that the US unemployment level could knock down further than the month of November of 5.8%.
“On the flip side, this could be a precursor for a faster-than-expected tightening of the US Federal Funds Rate,” she said.
Rosnani however said the softness of global commodity prices could weigh on that.
“Also, the US reported lower-than-expected November trade deficit of USD39 billion against the expectation of US$42 billion.
“Finally, crude oil price made some good gains against yesterday’s low after closing at US$49 (WTI) and US$51 (Brent) respectively, giving some breathing space to energy stocks.
“Although all these catalysts could be a temporary booster but it is nonetheless a welcoming development especially when the global equity market started off 2015 on the left side of the leg. As for today, we expect the market to regain some lost grounds,” she said.