KUALA LUMPUR (July 14): Malaysian shares may today track overnight US stock gains after Greece reached a conditional deal with lenders to fix the country's financials.
Reuters reported that Greece won conditional agreement to receive a possible US$95 billion over three years, along with an assurance of talks to bridge a funding gap until a bailout is ready. The deal is contingent on Greece meeting a tight timetable to enact strict reforms.
Yesterday, Malaysia's FBM KLCI added 0.53 point or 0.03% to close at 1,716.11.
Overnight, the US' Dow Jones Industrial Average climbed 1.22%, S&P 500 rose 1.11% while Nasdaq Composite was 1.48% higher.
In Malaysia, AllianceDBS Research Sdn Bhd technical analyst Teoh Chang Yeow said the KLCI might breach 1,720 points in the near term as the index had traded above 1,700 in recent days. "Following the up close above the 1,700 level for three consecutive days, the benchmark index is expected to stay between 1,698 and 1,728 in the coming few days.
"The analysis of overall market action on 13 July 2015 revealed that buying power was stronger than selling pressure. As such, the KLCI would likely trade above the 1,718.39 level on 14 July 2015," Teoh wrote in a note.
Meanwhile, crude oil prices are also closely watched amid Iran's nuclear negotiations, the deal from which, could see the country freed from economic sanctions. Without sanctions, Iran is expected to contribute to an already oversupplied global oil market.
Reuters reported that on Monday, Brent futures settled down 88 cents, or 1.5 percent, at US$57.85 a barrel. U.S. crude futures finished 54 cents, or 1 percent, lower at US$52.20.