Market Close KLCI 0.6% higher on prospect of easier European monetary policy

by **Cals** Wed 27 Aug 2014, 23:23

Market Close KLCI 0.6% higher on prospect of easier European monetary policy

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Wednesday, 27 August 2014 17:32

KUALA LUMPUR (August 27): The FBM KLCI rebounded today, closing 0.6% higher in line with most regional markets. World markets rose on speculation that European Central Bank will loosen monetary policy to support the euro zone's economy.

In Malaysia, the KLCI rose 10.56 points to settle at 1.872.38 points.

Lee Cherng Wee, analyst for JF Apex Securities Bhd, told theedgemalaysia.com the KLCI had touched its support level of 1,860 points and rebounded with sentiment buoyed by positive US markets as well.

He said the KLCI was expected to trade sideways between 1,860 and 1,880 points in the near term, with a critical support level of 1,840 points.

Across the board, a total of 2.64 billion shares worth RM2.41 billion were traded. Decliners edged gainers slightly, with 439 decliners against 410 gainers.

Top gainers included British American Tobacco (M) Bhd, Hong Leong Financial Group Bhd and Hong Leong Capital Bhd. Leading decliners included AEON Credit Service (M) Bhd and Bumi Armada Bhd.

The most actively traded counter was Sumatec Resources Bhd.

Across the region, Japan’s Nikkei rose 0.09%, South Korea’s Kospi gained 0.33%, while Hong Kong’s Hang Seng fell 0.62%.

Reuters reported that the euro was cracking under pressure on Wednesday as feverish speculation of further policy stimulus in the euro zone drove bond yields to all-time lows and lifted Asian stocks to peaks not seen in almost seven years.

The groundbreaking call by European Central Bank President Mario Draghi for more action on both the monetary and fiscal fronts has markets wagering that fresh steps could come as soon as next week when the central bank's governing council meets.

The prospect of yet further lashings of liquidity in Europe was taken as a positive for emerging markets and MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4 percent to its loftiest since January 2008.