Market trades marginally higher

Asian stock markets rose on Friday, March 26 bolstered by news of the finalisation of a bailout package for Greece. Notably, Japan’s Nikkei 225 index hit its highest level in 18 months.

European leaders agreed have backed a deal to provide €23 billion in aid to help Greece tackle its debt crisis. The rescue package involves bilateral loans and funds from the International Monetary Fund. This draws to a close weeks of uncertainty for investors over Greece’s debt problems and support from the euro-zone members.

Indeed, uncertainties ahead of the actual Greece bailout announcement caused Wall Street to give back almost all its earlier gains on Thursday, to end flat.

The Dow Jones Industrials Average had earlier risen over 100 points in intra-day trading, buoyed by data showing initial weekly jobless claims falling 14,000 to 442,000, compared to forecasts of around 450,000, as well as comments from US Federal Reserve chairman Ben Bernanke suggesting low interest rates were likely toremain for a while.

Still, we are probably not out of the woods yet as far as European sovereign debt issues are concerned, as attention will likely focus later on the other countries with large deficits, such as Portugal, Spain and Ireland. Portugal recently saw its credit rating slashed.

Shares on Bursa Malaysia closed higher although gains were less by comparison. The FBM KLCI rose 2.7 points to 1,315.4. Trading volume remained relatively robust at 1.25 billion shares.

Market breadth was positive with advancing stocks beating declining ones by a nearly 5-to-2 ratio. Actively traded stocks include KNM, SAAG, Time dotCom, newly listed Hock Heng Stone Industries, DRB-Hicom and Multi-Purpose Holdings.

Glove makers such as Supermax, Hartalega and Kossan and extended their recent strong rally, and led the day’s major gainers. Other major gainers include Proton and Mudajaya. Losers include Jerneh, TSR and Globetronics.

Next week, all eyes will be on the New Economic Model and the InvestMalaysia Conference, which will provide some fresh leads for domestic investors.