KLSE Stock Recommendations

MARKET UPDATES :

BRENT crude oil prices fell below US$50 (RM179) a barrel for the first time since May 2009 yesterday as global business growth slowed to its weakest in a year, and analysts said a growing supply glut meant more falls were likely.The pace of global business growth eased to its weakest rate in over a year at the end of 2014 as rates of expansion slowed in both the manufacturing and service industries, according to JPMorgan’s Global All-Industry Output Index, produced with Markit.Benchmark Brent crude futures fell more than US$1 to US$49.92 a barrel just before 0800GMT, reaching levels last seen in May 2009, although prices edged back above US$50 later.

STOCK RECOMMENDATION :

BUY FIAMMA HOLDING ABOVE 1.960 TARGET 2.010 2.090 SL 1.910

U.S. stocks surge; S&P 500, Dow gain most in 3 weeks

U.S. stocks ended Thursday with the largest advance in three weeks, as two days of steady oil prices along with dovish comments by a Federal Reserve member helped further fuel a buying frenzy begun Wednesday.

The S&P 500 SPX, +1.79%  added 36.26 points, or 1.8%, to 2,062.14, rising the most in three weeks, with the materials, technology and energy sectors leading gains, each rising more than 2%. Nine out of the 10 S&P sectors ended with a gain of more than 1%.

Dollar index rises for 7th-straight session

The ICE U.S. Dollar Index rose for the seventh-consecutive session Friday, boosted by rising crude-oil prices, a strong performance by U.S. stocks and the expectation that the European Central Bank will soon expand its program of asset purchases.

The dollar index, a measure of the dollar’s strength against a trade-weighted basket of six currencies, the heaviest of which is the euro, DXY, -0.13%  was up 0.48% to 92.3300 Thursday.

The shared currency EURUSD, +0.10%  fell to $1.175, its lowest since late 2005, around 8 a.m. Eastern time. It was valued at $1.179 in recent trade, down from $1.183 late Wednesday.

The dollar traded at USDJPY, -0.26%  was at ¥119.63, compared with ¥119.16 late Wednesday in New York.

After hitting an 18-month low of around $1.503 earlier in the session, the pound GBPUSD, +0.01% recovered against the dollar, but remained slightly lower for the session, after the Bank of England left its benchmark interest rate at 0.5% and left its bond-buying stimulus program unchanged. 

The pound traded at $1.51 in recent trade.

Palladium Market Update

Palladium for March PAH5, +0.38%  delivery rose 65 cents to $793.10 an ounce, while April platinum PLJ5, +0.11%  was $2.10 to $1,223 an ounce. High-grade copper for March delivery HGH5, -0.27%  added a penny, or 0.4%, to $2.77 a pound.

Gasoline Market Update

February gasoline RBG5, -3.43% turned higher, ending Thursday up less than a penny, or 0.3%, to settle at $1.3409 a gallon on Nymex. February heating oil HOG5, +0.43%  also turned higher, up 1 cent, or 0.7%, to $1.7110 a gallon on Nymex.