FBM KLCI starts on a good note

KUALA LUMPUR: The Malaysian stock market barometer began on a good note on Monday March 1, in line with gains across Asian equities following news that the US economy grew faster than expected.

Analysts said the direction of stock markets this week would hinge on global economic data, while the Malaysian market needed to see a higher trading volume to sustain its performance.

As at 9.31am, the FBM KLCI rose 8.13 points to 1,278.91 spurred mainly by shares of PLANTATION [] heavyweights.

"Last Friday's more robust buying momentum looks promising, but nonetheless, stronger participation in excess of one billion shares per day will be crucial for a sustainable breakout from the current consolidation phase.

"Meanwhile, stronger-than-expected economic data from the US and regionally will be an added boost to market sentiment this week," TA Securities Holdings Bhd wrote in a note to clients this morning.

Across Bursa Malaysia, a total of 115.38 million shares worth RM94.66 million changed hands, resulting in
195 advancing stocks versus 127 declining entities.

Top gainer BINTULU PORT HOLDINGS BHD [] rose 70 sen to RM7 while major decliners include PRESTAR RESOURCES BHD [] which lost 22.5 sen to 29 sen, and RAMUNIA HOLDINGS BHD [] which was down 20.5 sen to 19 sen. Ramunia was the most active stock with some 24 million shares traded.

Across Asia, Japan's Nikkei 225 added 0.47% to 10,173.99 while Australia's S&P ASX 200 was up 0.52% to 4,662.00.

The US economy expanded at a faster than expected annual pace of 5.9% in the fourth quarter of 2009, according to the Commerce Department. Market estimates have indicated a 5.7% growth.

Last Friday, the Dow Jones Industrial Average rose 0.04% to 10,325.26, Nasdaq added 0.18% to 2,238.26, while S&P 500 was up 0.14% to 1,104.49.