Malaysian shares expected to open firmer (BT)

MALAYSIAN shares are expected to open firmer today after the Dow Jones Industrial Average ended higher in trading yesterday.

“We think the market should still stabIlize. The Dow’s positive close will help and there is no negative news to really affect the market. Investors generally don’t expect the current rally to end so soon yet, and we think it may last until June or July,” said an institutional dealer from a leading Malaysian brokerage.

“The counters that we are looking at today are property and construction stocks because investors are again switching from defensive plays into high-beta stocks,” she added.

The dealer said the benchmark stock index may test the 1,050 points level today. On the downside, a correction may send the key index to 980 points, and if the level does not hold, 920 points will be the next support level.

The Dow rose yesterday as investors scooped up defensive shares, including Pfizer, while energy companies’ stocks climbed as oil hit a six-month high.

But the S&P was little changed and the Nasdaq fell as financial and technology shares declined after leading the recent rally from bear market lows.

Oil rose to a six-month high yesterday on optimism an economic recovery may prompt rising fuel demand and on buying to hedge against a weaker U.S. dollar. - Reuters