Shares open higher after US equity rise

KUALA LUMPUR (June 26): The FBM KLCI opened higher today with Asian stock indices after US equity gauges finished up in Thursday overnight trades. It was reported that US equities rose in response to a loosening in bank regulations.

“Throwing some cold water on the rally, however, were the U.S. Federal Reserve’s capital limits for banks after its stress tests on the sector revealed key vulnerabilities,” Reuters reported.

At Bursa Malaysia today, the KLCI rose 3.13 points to 1,492.33 at 9:01am before rising 3.26 points to 1,492.46 at 9:03am.

Across Bursa, a total of 238.54 million shares were traded for RM70.12 million as analysts predict window dressing activities in the Malaysian stock market towards the end of the second quarter and as investors continue to be mindful of the resurgence in global Covid-19 infections.

Rakuten Trade Sdn Bhd wrote in a note today : “Wall Street continued to be volatile as it recovered and closed higher notwithstanding the rising Covid-19 cases as it opens its economy. Tech stocks continued to lead with Nasdaq reclaiming the 10,000 level once again. Today we expect regional markets to move higher in line with the positive US market.”

“On the local front, we believe the KLCI which have been under selling pressure is due for technical rebound and possible window dressing activities, hence we advocate buy on weakness,” Rakuten said.

Source: TheEdgeMarkets