Malaysian stocks set to rise after
KUALA LUMPUR, Dec 3 (Reuters) - Malaysian shares are likely to edge up on Wednesday, following a rebound on Wall Street overnight, which was lifted by economic bellwether General Electric's pledge to maintain its dividend.
The Malaysian market, which has outperformed the region this year, is also likely to be supported by buying interest from local funds ahead of the year end, dealers said.
"The funds are buying big caps like Sime Darby and Tenaga Nasional, and that is supporting the index as well," said a dealer at a local brokerage house.
"This is why you can see that the index here was down only marginally yesterday, while the other markets in the region fell sharply," she said.
Dealers said power firm YTL Power (YTLP.KL: Quote, Profile, Research, Stock Buzz) would also be in focus after it announced a S$3.8 billion ($2.5 billion) acquisition of Singapore electricity generator PowerSeraya from Temasek Holdings.
"YTL has a healthy dividend yield and balance sheet, and this acquisition would probably add to the upside in its share price," said on dealer.
US MARKET
Wall Street Rebounds Sharply After Big Drop
In a session that showed more indecision than conviction, the stock market rebounded Tuesday from the previous day's massive decline. The Dow Jones industrials rose 270 points after fluctuating sharply, and all the major indexes rose more than 3 percent.
Investors got an additional lift after the Federal Reserve said it will extend the life of key programs aimed at loosening the credit markets and restoring stability to the financial sector. That helped make financial stocks, the hardest hit sector since the credit crisis began, among the market's biggest gainers.
"I don't know where the bottom to all this is," said Alexander Paris, economist and market analyst for Chicago-based Barrington Research. "In these kind of markets, all you have to do is get enough confidence to hold your nose and ignore the bad news to send the market higher."
The Dow rose 270.00, or 3.31 percent, to 8,419.09, making back more than a third of Monday's plunge.
Ryan Detrick, senior technical strategist at Schaeffer's Investment Research, said there still might be too much optimism in the market, considering the five straight days of advances before Monday's drop. He believes there was too much excitement on the part of investors that a bottom might have formed, and that sets the market up for disappointments.
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