business

KLCI starts lower, expected to advance in line with region

March 10, 2016

The FBM KLCI started trading lower this morning but is expected to claw back into positive territory later in the day in line with regional markets.

At 9.02am, the FBM KLCI was down 1.81 points to 1.684.54.

The early decliners included Petronas Gas Bhd, British American Tobacco (M) Bhd, MISC Bhd, Malaysia Airports Holdings Bhd, Petronas Dagangan Bhd, Hong Leong Bank Bhd, UEM Edgenta Bhd, Genting Bhd and RHB Capital Bhd.

Asian stocks edged up today after New Zealand surprised markets with a rate cut, keeping investors primed for more stimulus from the European Central Bank later in the day as global policy makers step up efforts to support their wobbly economies.

A rebound in the price of oil, a source of recent anxiety, also calmed investor nerves, it said.

JF Apex Securities Research in a market preview today said US and European markets closed higher lifted by a rise in oil prices, as investors awaited Thursday's European Central Bank decision on monetary policy.

It said ECB President Mario Draghi is expected to announce more stimulus measures, with hopes of expansion of the asset purchase program and a possible further cut to the already negative deposit rate.

“Back to local market, the FBM KLCI fell 1.51 points or 0.1% to end at 1686.35 points after China’s weaker-than-expected external trade figures.

“We envisage the local bourse to stage a rebound for today to re-test the immediate resistance level of 1700-1710 following the surge in crude oil prices with Brent slightly above the US$40/barrel,” it said. – The Edge Markets, March 10, 2016.