Higher on mixed trading

Share prices on the Bursa Malaysia remained tightly range bound at the beginning of the new week. Fluctuations in the FBM KLCI were relatively small throughout the trading day on Monday, April 26.

Whilst investors seem fairly comfortable in the market’s underlying resilience, it appears that few are taking on any fresh big bets either. It is likely that the prevailing sentiment will persist in the coming days.

The benchmark index stayed in positive territory through the trading day before closing three points higher at 1,340.1. On the other hand, market breadth was more mixed, slipping into the red before turning around late in the day. The number of gaining stocks managed to edge ahead of losing ones by a ratio of roughly six to five at the close.

Just under 800 million shares were traded. Investor interest was focused primarily on lower liner stocks. Talam was the most heavily counter Monday. Other actives include KNM, Tejari Technologies, AIM and Nam Fatt.

Other Asian markets too traded on a stronger footing. Bellwether indices in key markets in the region closed mostly higher on the back of Wall Street’s gains last week. The closely monitored Dow Jones Industrial Average ended higher last Friday, extending its gains to the eighth consecutive week and one of the longest winning streaks in recent years.

Confidence in the economic recovery was bolstered by strong new home sales numbers in the month of March while corporate earnings too have, by and large, lived up to market expectations. Investors will continue to look to upcoming data for further evidence of strength in the recovery.

Greece’s move over the weekend to request for help under the EU-IMF aid package also calmed jitters by averting a speculated sovereign default, at least for the moment. A speedy disbursement under the bailout plan will help the country keep its borrowing costs reasonable after yields on its bonds surged to record levels last week.