Shares on the Bursa Malaysia traded on a slightly firmer footing on Wednesday, Dec 2. Gains were, however, somewhat muted. Investors are probably still wary of more volatility in the near term and may be refraining from taking up fresh positions in favor of locking in gains from the past months’ rally.

Nevertheless, it does not appear that a major correction is imminent. Case in point, investors have very quickly shrugged off contagion concerns from Dubai’s debt crisis and have renewed their bets on risky assets. Most equity markets have recouped all of their losses from the initial sell off.

Bellwether indices in key Asian markets traded higher again on Wednesday, buoyed by Wall Street’s overnight gains. The Dow Jones Industrial Average was up by nearly 127 points. The closely watched benchmark index is now very near its year-high level.

Commodity prices are also rallying as investor risks appetite increased. Prices for commodities are also being driven by expectations of a weaker US dollar. The greenback appears stuck on a downward path in the foreseeable future.

Gold prices surged well above US$1,200 an ounce, marking a fresh all-time high for the second straight day. It does appear as though the precious metal’s rally is unstoppable, at least in the near term. Elsewhere, crude oil futures in electronic trading on the New York Mercantile Exchange stayed above US$78 per barrel – despite higher US stockpiles and indications that demand growth is still tepid.

On the home front, the FBM KLCI opened in positive territory and stayed there throughout the trading day. The benchmark index ended the day four points higher at 1,271.2. Some of the big gainers for the day include BTM Resources, KL Kepong, Tanjong plc and Genting. Market breadth was also positive. There were roughly two gaining counters for every losing one at the close. About 855 million shares worth RM1.05 billion changed hands.