The FBM KLCI is expected to trend higher today to re-test the 1.500 mark and beyond, says Rakuten Trade in its market report today.
"The FBM KLCI closed off the day’s low attributed to buying support by foreign funds. Therefore, we reckon the index is in good stead and is expected to trend higher today to re-test the 1,500 mark and beyond.
"Meanwhile, a rebound in vegetable oils prices helped push crude palm oil higher to RM3,864/tonne while the Brent crude slumped to below US$97/barrel on higher inventory build up."
FBM KLCI closed lower yesterday as investors remained in profit taking mode. The benchmark index lost 0.3% or 4.48 points to end at 1,490.57 with losers led by HLBANK, MISC and MAYBANK.
Market breadth was mixed with 399 losers against 367 gainers while 451 were unchanged. Total volume stood at 1.91bn shares valued at RM1.35bn.
Key regional markets closed mostly higher yesterday. Nikkei 225 and STI gained 0.53% and 0.40% to end at 27,741.90 and 3,252.06. HSI added 0.40% to close at 19,767.09. SHCOMP lost 0.71% to close at 3,163.67.
Wall Street ended higher on better economic data. The DJIA gained 1.29% to end at 32,812.50. S&P500 and Nasdaq rose 1.56% and 2.59% to close at 4,155.17 and 12,668.16 respectively.
Wall Street closed sharply higher on improved economic data indicating that the US economy is able to withstand the Federal Reserves fight on inflation.
The DJI Average jumped by 416 points while the Nasdaq ended 319 points higher as the US 10-year yield declined to 2.71%.