Business

Published: Wednesday September 23, 2009 MYT 10:16:00 AM

FBM KLCI begins week on higher note after the Raya holidays


KUALA LUMPUR: Stocks on Bursa Malaysia opened in positive territory on the first day of trading for this week after the stock market was closed for two consecutive days in conjunction with the Raya celebrations.

The Dow Jones Industrial Average was slightly higher in overnight trading. Major bourses in Asia, meanwhile, were trading lower today after enjoying two gaining days.

The US Federal Open Market Committee (FOMC) started its two-day meeting yesterday to discuss the country’s monetary policy. The US dollar weakened to 1.4797 versus the euro on expectation that the regulator would keep the US benchmark rates unchanged.

At 10.05am, the Shanghai Composite Index dropped 0.7%, Hang Seng Index fell 0.4%, Kospi was down 0.2%, Singapore’s Straits Times Index was marginally lower by 0.03% while Taiwan’s benchmark index lost 0.3%.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rose 3.7 points at 1,224.9. Gainers led losers 220 to 143 while 192 counters were unchanged.

Most index-linked stocks were up - Tenaga Nasional Bhd rose 7 sen to RM8.30, Genting Bhd gained 11 sen to RM7.31 and Proton Holdings Bhd added 13 sen to RM4.57.

Plantation heavyweights IOI Corp Bhd increased 11 sen to RM5.41, PPB Group Bhd gained 12 sen to RM16.02 while Sime Darby added 1 sen to RM8.60 on expectation of higher crude palm oil prices, in line with gains in oil prices.

A research house, in a report, said the benckmark index was likely to gyrate towards its immediate resistance target of 1,230 ahead, thanks to the still buoyant external backdrop.

“While our local stock exchange was on holidays, most regional peers posted better performance during the two-day period,” it said.

While investors would be waiting for the outcome of the US FOMC meeting tonight, the greater interest would be on the policy makers’ rhetoric on interest rate expectations and the US economic prospects, the brokerage added.

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