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KUALA LUMPUR: The domestic stock index opened on a slight rebound following the previous day’s sharp decline as Wall Street markets ended mixed overnight and eurozone inflation data improved the prospects of interest rate cuts.
At the opening bell, the FBM KLCI was up 1.97 points to 1,538.98.
“Moving forward, we expect some mild recovery, owing to the slightly dovish stance from the US counterpart.
“Although the lower liners managed to claw their way into the positive territory, we advocate any signs of pullback will be taken as a signal to lock in recent gains,” said Apex Securities Research in a note.
Blue chips bouncing back from the previous day’s sell-off include CelcomDigi rising seven sen to RM4.32, CIMB gaining six sen to RM6.62 and Kuala Lumpur Kepong climbing 12 sen to RM22.90.
Top actives included TWL unchanged at three sen, Southern Score Builders gaining 1.5 sen to 37.5 sen and Paos jumping 6.5 sen to 44 sen.
A report released yesterday showed the eurozone’s March annual rate of inflation fell at a faster rate than expected with consumer prices slowing to 2.5% from 2.6% in February.
This gave investors more evidence that efforts to rein in inflation were taking effect, giving the European Central Bank new impetus to slash lending costs.
US stock markets were mixed as stocks attempted to regain some of the bullish momentum seen in the first quarter of the year.
The 30-stock Dow Jones fell 0.1% to 39,127, marking a third consecutive day of losses, while the S&P500 rose 0.1% to 5,211 and the Nasdaq gained 0.2% to 16,277.
Moving forward, Apex Securities said investors will be monitoring the eurozone’s non-manufacturing purchasing managers’ index.
