ZLBT Morning Views : Bursa Malaysia + Wall Street

Malaysian Stock Market May Extend Gains
The Malaysian stock market has finished higher now in back-to-back sessions, adding more than a dozen points or 0.6 percent along the way. The Kuala Lumpur Composite Index settled just above the 1,575-point plateau, and now analysts are forecasting additional gains for the market when it kicks off trade on Thursday.

The global forecast for the Asian markets is broadly positive following optimism over a resolution for the Greek debt crisis. Commodities are expected to fuel the rally - gold and oil, in particular - while financials also should provide support. Softness from the properties and airlines may limit the upside. The European and U.S. markets finished firmly in the green, and the Asian bourses also are tipped to track to the upside.

The KLCI finished slightly higher on Wednesday following gains from the financial shares, industrial issues and plantation stocks.

For the day, the index added 4.99 points or 0.32 percent to finish at 1,575.01 after trading between 1,570.39 and 1,575.81. Volume was 1.044 billion shares worth 1.796 billion ringgit. There were 434 gainers and 333 decliners, with 319 stocks finishing unchanged.

Among the actives, Maybank, Sime Darby, Tenaga Nasional, Petronas Chemicals and Axiata all finished higher, while Media Shoppe was unchanged and CIMB Group ended lower.

The lead from Wall Street is fairly upbeat as stocks posted further upside on Wednesday after showing strong upward moves in each of the two previous sessions. The markets benefited from news that the Greek parliament voted to approve a crucial package of austerity measures.

WALL STREET : Rebound extends into 3rd day

Stock indexes poised for monthly gains; quarterly losses

Greece remained in the driver's seat today, as traders around the globe cheered the parliamentary approval of much-needed austerity measures for the debt-laden country. Another vote on implementation is scheduled to take place on Thursday, but U.S. investors didn't hesitate to price in their optimism over today's legislative victory. On the home front, a dose of upbeat housing data also fueled the bulls, with the National Association of Realtors (NAR) reporting a surprisingly robust rise in its pending home sales index. Black gold also joined in the day's rally, with the front-month oil contract catching a lift from unexpectedly steep declines in both crude and gasoline supplies. As a result, traders overlooked increasingly dire warnings about the U.S. debt ceiling from Treasury Secretary Timothy Geithner, President Obama, and the International Monetary Fund (IMF), sending the major market indexes to their third straight daily victory.

The Dow Jones Industrial Average (DJIA – 12,261.42) ended the day on a gain of 72.7 points, or 0.6%, as 24 of its 30 components closed higher. Bank of America (BAC) led the advancing blue chips, up about 3% after settling a suit related to mortgage-backed securities. Microsoft (MSFT) paced the six declining Dow members with a loss of 0.7%. Thanks to today's rally, the Dow closed above the 12,200 level for the first time since June 2.

The S&P 500 Index (SPX – 1,307.41) added 10.7 points, or 0.8%, and collected a daily finish atop the 1,300 region for the first time since June 3. Finally, the Nasdaq Composite (COMP – 2,740.49) rounded out the day's advance by tacking on 11.2 points, or 0.4%.

Crude oil rebounds another 2%

Crude oil futures continued to gain ground today, thanks to a steeper-than-expected decline in domestic stockpiles. The Energy Information Administration (EIA) said U.S. crude supplies fell by 4.4 million barrels in the week ended June 24, compared to expectations for a drop of just 1.7 million barrels. Plus, gasoline inventories plummeted by 1.43 million barrels, defying predictions for a modest weekly rise. In addition to evidence of shrinking supplies, traders also considered signs of an impending resolution to the Greek debt crisis, which stoked expectations for a rebound in global demand. Against this backdrop, August-dated crude futures added $1.88, or 2%, to end at $94.77 per barrel.

HAPPY TRADING