FBM KLCI starts lower before rising

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KUALA LUMPUR (Aug 28): The FBM KLCI opened lower before rising as global shares took cue from US equities' overnight gains after the S&P 500 and the Nasdaq Composite closed at record highs. It was reported that US stocks rose after the US announced an agreement with Mexico to replace the North American Free Trade Agreement (NAFTA).

At Bursa Malaysia today, the KLCI opened 0.47 point lower at 1,811.13 at 9am. At 9:08am, the KLCI climbed 2.29 points to 1,813.89.

"While sentiment has improved somewhat, stronger buying momentum and liquidity boost on the domestic market will be needed to promote sustained rise to higher ground," TA Securities Holdings Bhd wrote in a note today.

Across Asia, Reuters reported that Asian shares advanced again on Tuesday while major currencies held on to gains amid hopes global tariff tensions were abating as the US and Mexico made a deal to overhaul the NAFTA.

It was reported that investors expect Canada too would agree to the new terms to preserve a three-nation pact, ultimately dispelling the economic uncertainty caused by US President Donald Trump's repeated threats to ditch the 1994 NAFTA accord. MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.3% for a second straight day of gains. Australian shares added 0.5% while Japan's Nikkei jumped 0.8%.

Overnight in the US, the Dow Jones Industrial Average rose 259.29 points, or 1.01%, to 26,049.64, the S&P 500 gained 22.05 points, or 0.77%, to 2,896.74 and the Nasdaq Composite added 71.92 points, or 0.91%, to 8,017.90.