FBM KLCI up before erasing gains as financial reporting season nears conclusion

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KUALA LUMPUR (Aug 30): The FBM KLCI opened higher before falling as investors took cue from US stocks' overnight rise and evaluated Malaysian corporate earnings. 

The Malaysian corporate financial reporting season for the April-June quarter is nearing conclusion today. The reporting season starts in July although most companies announce their earnings in August.

At 9am today, the KLCI opened 0.92 point higher at 1,821.56. At 9:16am, the KLCI fell 1.63 points to 1,819.01 as KLCI-linked stocks Telekom Malaysia Bhd and Petronas Chemicals Group Bhd emerged among Bursa Malaysia top decliners. 

Overnight in the US, Reuters reported that Wall Street extended its rally on Wednesday, with the S&P 500 and the Nasdaq hitting record highs for the fourth straight session as technology companies pushed indexes higher and promising trade negotiations stoked investor sentiment. The Dow Jones Industrial Average rose 60.55 points, or 0.23%, to 26,124.57, the S&P 500 gained 16.52 points, or 0.57%, to 2,914.04 and the Nasdaq Composite added 79.65 points, or 0.99%, to 8,109.69.

In Malaysia today, JF Apex Securities Bhd wrote in a note: "Following the bullish performance in the US and Europe, the FBM KLCI could resume its ascend towards the resistance of 1,850 points."