Published: Friday June 15, 2012 MYT 5:48:00 PM
Hopes of global response to Greek worries lift markets
By Joseph Chin
KUALA LUMPUR: European bourses and key regional markets were firmer on Friday, with the FBM KLCI rebounding more than eight points, as investors hope for a global response to Sunday's Greek elections.
At Bursa Malaysia, the KLCI rose 8.29 points or 0.53% to 1,579.23, underpinned by gains in IOI Corp and Genting. Turnover was 979.94 million shares values at RM2.418bil, the highest in recent weeks. Advancing counters beat decliners 440 to 273 while 312 stocks were unchanged.
There was also some portfolio rebalancing seen in consumer stocks ahead of the weekend while Petronas related counters continued to lose ground for the second day after the late selling on Thursday.
Reuters reported world shares crept higher and the euro hovered near a three-week high on Friday, supported by talk of a global response in the event of turmoil after the Greek election, which also prompted investors to square positions. Reuters reported major central banks stood ready to stabilize financial markets by providing liquidity if the election result causes financial upheaval.
Expectations of more monetary stimulus were also boosted by a British plan to flood its economy with cash, and after economic data in the US rekindled talk of further easing by the Federal Reserve which holds a policy meeting next week.
Japan's Nikkei 225 was flat at 8,569.32, Hong Kong's Hang Seng Index rallied 2.26% to 19,233.94; Shanghai's Composite Index added 0.47% to 2,306.85; Taiwan's Taiex added 1.14% to 7,155.83 and Singapore's Straits Times Index climbed 1.34% to 2,811.00
However, South Korea's Kospi fell 0.71% to 1,858.16.
US light crude oil rose 72 cents to US$84.63 and Brent 52 cents to US$97.69. The ringgit was firmer against the US dollar at 3.1655 compared with 3.1862 on Thursday.
Crude palm oil for third-month delivery rise RM3 to RM2,849.
Genting added 30 sen to RM9.68, helping to nudge the KLCI up 2.62 points while Genting Malaysia's 20 sen gain to RM3.60 adding 1.85 points to the index.
Consumer stocks were mixed, with Nestle up RM2.20 to RM57.40, Carlsberg Rm1.68 to RM12.98 and Dutch Lady 90 sen to RM34.50. However, BAT fell Rm2.34 to RM52.26 and F&N RM1.60 lower at RM16.80 and GAB lost 80 sen to RM12.70.
Pharmaniaga ended the day RM1.51 higher to RM6.50 after hitting limit-up in early trade.