Merket rises further as on 24th March 2010

Wednesday, March 24, 2010

Merket rises further as on 24th March 2010

Written by Insider Asia

Wednesday, 24 March 2010 17:25

Asian stock markets rose further on Wednesday, March 24 on renewed optimism over the outlook for the global economy. This follows overnight gains on Wall Street, as well as a large jump in Japan’s trade surplus. The gains in Asian stocks buoyed shares on Bursa Malaysia, which extended its gains for the second day, on much higher volume. Interest was also buoyed by local glove-makers on expectations they will benefit from the recent passing of the US healthcare reform bill. The FBM KLCI rose 4.6 points to 1,309.5, on top of Tuesday’s already sizable 11.2-point gain. Trading volume continued to improve, rising from 908 million to 1.14 billion shares. Market breadth was positive with advancing stocks beating declining ones by a nearly 2-to-1 ratio. Actively traded stocks include Time dotCom, AEM, JCY, KNM and MAS. Glove makers such as Top Glove, Kossan and Hartalega were among the day’s top gainers. Losers include Genting, Hai-O and Ho Hup. Investors in the region were heartened by Wall Street’s continuing uptrend. The Dow Jones Industrials Average has risen for much of the last week, with its rally interrupted for only a day – last Friday. The index is now trading at its highest level in 18 months. While Wall Street’s Monday gains were sparked by the passage of the historic healthcare reforms bill, Tuesday’s rally came amid data showing February existing-home sales falling less than expected. Still, worries over Greece remain ahead of the European Union summit on 25-26 March 2010, as there are concerns over whether European countries will agree to a support package. This is weakening the euro versus the greenback. But for now at least, investors took heart from Wall Street’s rally and recent assurances by the US Federal Reserve that interest rates will stay low for an extended period. Locally, investors will also eagerly await the New Economic Model and the InvestMalaysia Conference.