FKLI Related News (Fri, May 17)

United States (US) stocks fell on Thursday, with the downturn accelerating late in the day after a Federal Reserve official said the central bank could begin easing up on its monetary stimulus this summer. The three major US stock indexes had earlier traded in a tight range, supported by a gain of more than 12 per cent in Cisco Systems shares and as investors took in a batch of economic data that pointed to slower growth.

U.S. stock index futures were little changed on Thursday following four days of losses on the S&P 500, with trading once more expected to be dictated by developments in Europe. Greek politicians rejecting the conditions for a bailout that is keeping the country's finances afloat are likely to win next month's elections, and the political turmoil has sent riskier assets sharply lower over the past weeks.  Spain's medium-term borrowing costs rose sharply in a Thursday auction of 3- and 4- year bonds, reflecting concerns over the Spanish banking system and economy. Giving investors some respite Japan's economy grew 1.0 percent in the first quarter, slightly more than expected, and a 0.2 percent contraction reported in the world's third-largest economy for the final three months of 2011 was revised up to flat.

The U.S. data calendar includes the release of first-time weekly claims for jobless benefits at 8:30 a.m. (1230 GMT). Economists in a Reuters survey forecast a total of 365,000 new filings compared with 367,000 in the prior week. S&P 500 futures edged up 0.4 point and were slightly above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 1 point, and Nasdaq 100 futures shed 3 points. The pan-European FTSEurofirst 300 index fell 0.8 percent after hitting a fresh 2012 low. A gauge of European bank stocks dropped 2.3 percent.          [Reuters]

Stocks on Bursa Malaysia ended broadly lower yesterday due to selling pressure, while regional bourses traded mixed, as investor excitement on Japan's better economic growth data was partly dampened by the country's softer capital expenditure data which fell 0.7 percent, in the fifth straight quarter of decline. The FBM KLCI which notched new historic highs on Monday and Tuesday, ended at 1,766.72, sliding 16.31 points or 0.91%, weighed down by losses in major blue-chips. 

FKLI spot month contract opened slightly higher this morning at 1,766 following Japan’s positive economic growth. Today’s Support and Resistance for FKLI May contract is located around 1,750 and 1,775 respectively.