Market Open KLCI resumes upward trajectory as global markets rise

by **Cals** Sat 21 Jun 2014, 03:49

Market Open KLCI resumes upward trajectory as global markets rise

Business & Markets 2014

Written by Surin Murugiah of theedgemalaysia.com

Friday, 20 June 2014 09:17

KUALA LUMPUR (June 20): The FBM KLCI resumed its upward trajectory in early trade on Friday as global markets rose.
At 9am, the FBM KLCI gained 3.88 points to 1,885.36.
The top gainers included Petronas Gas, BAT, Aeon Credit, KLk, Petronas Dagangan, Takaful, Pharmaniaga, Globetronics, Vitrox and Matrix.
BIMB Securities Research in a market preview Friday said most world stock markets rose yesterday after the Federal Reserve signaled U.S. interest rates would remain at record lows.
It said equity investors had been awaiting the Fed's economic updates and statements by Chair Janet Yellen, who made clear that although the world's largest economy was seeing a steadily improving job market and modest inflation, there was no need to raise short-term rates from record lows anytime soon.
The research house said the Dow Jones Industrial Average was up by 2.08% to 16,921.46.
“Sentiment on the London market was also lifted by overnight gains on the US and Asian equity markets, after the Federal Reserve (Fed) said the US economy was making progress.
“Stocks on FBM KLCI closed higher in line with the sentiment in regional bourses, boosted by the positive announcement by the US Federal Reserve.
“The FBM KLCI ended 4.9 points better at an intra-day high of 1,881.48, after dipping to a low of 1,872.64.
“We expect the index to remain on a positive stance in line with the regional market with immediate resistance at 1885.9 and immediate support at 1877.06,” it said.
Elsewhere, an index of global stocks was near record highs on Friday while gold celebrated its biggest one-day rise in nine months as markets wagered policies would stay super loose in the United States, Europe and Japan for a long time to come, according to Reuters.
Investors piled into bullion while selling U.S. government debt on the premise the Fed might be comfortable with higher inflation if it meant faster economic growth, it said.