FKLI Related News (Fri, May 31)

NEW YORK (Reuters) - Stocks rose on Thursday, rebounding from the previous session's losses, as tepid economic data eased concerns the Federal Reserve would begin to gradually scale back its policy of stimulating growth. Shares tumbled on Wednesday on concern the Fed would curb its bond-buying because of signs the economy was strengthening. U.S. Treasury bond yields rose to the highest in 13 months the same day, also influenced by concern about possible Fed tapering. "It won't be until around September before we really hear about possible changes in Fed (policy), but the market is volatile because at these levels, profit-taking is part of a hedging method to protect against possible downsides," said Randy Frederick, director of trading and derivatives at Charles Schwab in Austin, Texas. "After the profit-taking, the market moves right back up because it's a great buying opportunity, like today."

The Dow Jones industrial average (.DJI) was up 21.73 points, or 0.14 percent, at 15,324.53. The Standard & Poor's 500 Index (.SPX) was up 6.05 points, or 0.37 percent, at 1,654.41. The Nasdaq Composite Index (.IXIC) was up 23.78 points, or 0.69 percent, at 3,491.30. Data showed first-time claims for unemployment benefits unexpectedly rose in the latest week while the government's latest reading on first-quarter gross domestic product came in slightly below forecasts. Loose monetary policies by central banks around the world have helped drive both the Dow and the S&P 500 to record highs. The S&P 500 is up more than 16 percent this year so far.

Pending home sales rose 0.3 percent in April to the highest since April 2010, but analysts had expected a 1.1 percent rise. Volume was roughly 6.5 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, slightly above the average daily closing volume of about 6.4 billion this year. Advancers outpaced decliners on the NYSE 1,756 to 1,208. On the Nasdaq, advancers beat decliners 1,728 to 772.          [Reuters]

Share prices on Bursa Malaysia ended lower across the board yesterday, amid weak buying momentum, with sentiment dampened by the downtrend in  regional markets and Wall Street, dealers said. At 5pm, the FBM KLCI was 8.55 points or 0.5 percent lower at 1,774.92 after trading between 1,772.69 and 1,781.17 throughout the day. “The market is undergoing a ‘healthy correction’ at the moment after recent gains,” said TA Securities Senior Technical Analyst Stephen Soo. The negative flow of global news affected local and regional equity markets, he said. “The market is changing from the bulls to the bears,” Hwang DBS Vickers Research said.          [Bernama]            

FKLI spot month contract opened slightly higher this morning at 1,775 points. Todays’ Support and Resistance for FKLI May contract is located around 1,668 and 1,680 respectively.