FKLI Related News

U.S. stocks rebounded from their worst decline since November on Tuesday after Federal Reserve Chairman Ben Bernanke defended the Fed's bond-buying stimulus and sales of new homes hit a 4 1/2-year high. U.S. stocks jumped on Tuesday after Federal Reserve Chairman Ben Bernanke reassured investors about the continuation of stimulus measures, bucking a downward trend in global equities and oil prices on the uncertainty created by Italy's election. Bernanke's comments helped ease investors' concerns about a stalemate in Italy after a general election failed to give any party a parliamentary majority, posing the threat of prolonged instability and financial crisis in Europe, and sending the S&P 500 to its worst decline since Nov. 7 in Monday's session.

Gains in homebuilders and other consumer stocks, following strong economic data, lifted the S&P 500, and a 5.7 percent jump in Home Depot to $67.56 boosted the Dow industrials. The PHLX housing sector index rose 3.2 percent. Economic reports that showed strength in housing and consumer confidence also supported stocks. U.S. home prices rose more than expected in December, according to the S&P/Case-Shiller index. Consumer confidence rebounded in February, jumping more than expected, and new-home sales rose to their highest in 4-1/2 years in January. However, the central bank chairman also urged lawmakers to avoid sharp spending cuts set to go into effect on Friday, which he warned could combine with earlier tax increases to create a "significant headwind" for the economic recovery.

The Dow Jones industrial average gained 115.96 points, or 0.84 percent, to 13,900.13 at the close. The Standard & Poor's 500 Index rose 9.09 points, or 0.61 percent, to 1,496.94. The Nasdaq Composite Index advanced 13.40 points, or 0.43 percent, to close at 3,129.65. Despite the bounce, the S&P 500 was unable to move back above 1,500, a closely watched level that was technical support until recently, but could now serve as a resistance point.

Gold's biggest rally in months stretched into a second day on Tuesday after the U.S. Federal Reserve chief defended the stimulus program that has stoked gold buying on inflation worries, but oil fell on concern about Italy's elections. Soybean prices declined, giving up early gains as prices failed to break through technical resistance at their 20-day moving average. Brent crude oil fell to a one-month low under $113 a barrel on Tuesday as inconclusive Italian election results revived investor concerns about instability in the euro zone and about future demand for fuel.

Taking cue from the weak performance on Wall Street overnight, the FBM KLCI closed lower Tuesday at 1,624.18. FKLI spot month opened slightly higher this morning at 1,624 but is expected to fall slightly in ranged trade as global developments continue to dictate local market direction amid a lack of fresh leads, and as investors speculate on the timing of the local general elections . Today’s Support and Resistance for  February contract is located around  1,615 and 1,635 respectively.