FKLI  Related News

World equity and oil prices rebounded on Friday after Republican leaders of the U.S. House of Representatives said they would seek to break a budget impasse next week, while the yen hit a 31-month low against the U.S. dollar ahead of potential asset purchases by the Bank of Japan. [Reuters]

U.S. stocks rose for a third week, driving benchmark indexes to five-year highs, as earnings from companies including General Electric Co. and Goldman Sachs Group Inc. beat estimates and debt-limit talks progressed. Energy, industrial and consumer companies climbed the most among 10 groups in the Standard & Poor’s 500 Index as GE (GE) rallied 4.3 percent.

A gauge of homebuilders rose to the highest level since 2007 amid better-than-expected housing data. Morgan Stanley jumped 11 percent after reaching profit-margin targets six months ahead of schedule. Dell Inc. surged 18 percent amid reports it’s in buyout talks. Bank of America Corp. and Intel Corp. sank at least 3.4 percent on disappointing results. The S&P 500 (SPX) rose 1 percent to 1,485.98, extending its 2013 advance to 4.2 percent. The Dow Jones Industrial Average added 161.27 points, or 1.2 percent, to 13,649.70. Both measures closed at their highest levels since December 2007.

Equities rose as about 72 percent of the 67 S&P 500 companies that have reported quarterly results beat estimates. Economic reports showed retail sales advanced more than forecast in December and housing starts climbed 12 percent, capping the best year for the industry since 2008. Confidence among American households unexpectedly fell to a one-year low this month, as higher payroll taxes create a risk that the biggest part of the economy will slow in early 2013.

The benchmark index rallied on the final day of the week after Speaker John Boehner said House Republicans plan to vote on a three-month extension of U.S. borrowing authority in an effort to force the Democratic-led Senate to adopt a budget plan. Lawmakers in Washington remain divided about raising the debt ceiling and cutting government spending. The Treasury Department has said the U.S. will exceed its $16.4 trillion borrowing authority sometime from mid-February to early March. Since 1960, Congress has raised or revised the limit 79 times, including 49 times under Republican presidents, according to the department.          [Bloomberg]

Stocks on Bursa Malaysia closed lower last Friday in spite of advances in regional markets lifted by upbeat economic data from the US and China. FKLI opened sharply lower this morning at 1,657 and is likely to continue its correction and consolidation mode. Today’s Support and Resistance for January contract is located around 1,647 and 1,675  respectively.