KLCI up 0.27%, select blue chips lift

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KUALA LUMPUR (Aug 10): The FBM KLCI rose 0.27% at mid-morning today, lifted by select blue chips, against the backdrop of weaker regional markets.

At 10am, the FBM KLCI rose 4.95 points to 1,809.9.

Decliners edged advancers by 244 to 243, while 333 counters traded unchanged. Volume was 457.3 million shares valued at RM245.14 million.

The gainers included Fraser & Neave Holdings Bhd, British American Tobacco (M) Bhd, Malaysia Airports Holdings Bhd, Petronas Dagangan Bhd, Time dotCom Bhd, ViTrox Corp Bhd, United Malacca Bhd and IHH Healthcare Bhd.

The actives included Nova MSC Bhd, Key Asic Bhd, Destini Bhd, Diversified Gateway Solutions Bhd, My E.G. Services Bhd, QES Group Bhd and Foundpac Group Bhd.

The decliners included Far East Holdings Bhd, United Plantations Bhd, Scientex Bhd and Malaysian Resources Corp Bhd.

Asian stock markets fell on Friday amid heightened global trade tensions, while currency markets were whipsawed by a searing selloff in Russia's rouble after the United States slapped on new sanctions, and as economic worries sent the Turkish lira tumbling, according to Reuters.

Washington said it would impose fresh sanctions because it had determined that Moscow had used a nerve agent against a former Russian agent and his daughter in Britain, which the Kremlin denies, it said.

Hong Leong IB Research in a traders' brief said the trade developments between the US and China have turned uglier lately with the latest rounds of tit-for-tat tariffs, ahead of the next critical scheduled hearings of the proposed 25% charges on the US$200 billion worth of Chinese goods on Aug 20-23.

"Hence, we see more consolidation along 25,000-25,300 after the ongoing robust 2Q18 reporting season takes a backseat.

"As long as the 1,785-1,790 supports are not violated, we remain optimistic that KLCI could still launch another rally towards 1,846 zones (May 8 or pre-GE14 closing) in the medium to long term, supported by the bullish weekly indicators and a resumption in foreign inflows.

"Nevertheless, the relief rally from 1,657 could be disrupted [temporarily] due to profit-taking consolidation amid nagging worries by US-China tit-for-tat trade war and ongoing August reporting season," it said.