KUALA LUMPUR (Jan 11): The FBM KLCI looked poised to end the week on a positive note today after it rose 0.28% in early trade in line with regional gains, lifted by select index-linked stocks.
At 9.05am, the FBM KLCI rose 4.71 points to 1,683.59.
The gainers included Nestle (M) Bhd, British American Tobacco (M) Bhd, PPB Group Bhd, Kuala Lumpur Kepong Bhd, Malaysian Pacific Industries Bhd, Petronas Dagangan Bhd, Allianz Malaysia Bhd, Tenaga Nasional Bhd, MISC Bhd and KESM Industries Bhd.
Asian equities were set for gains Friday, on course for their strongest week since early November that’s been driven in part by optimism over US-China trade negotiations. The yuan extended its advance and Treasury yields climbed with the dollar, according to Bloomberg.
Futures pointed to a higher start in Tokyo, Sydney and Hong Kong after the S&P 500 extended its rally since Christmas Eve beyond 10%. Still, gains in US equities were limited as retailers sank amid concerns about a sales slowdown. Markets also saw some volatility as Federal Reserve Chairman Jerome Powell said the central bank is sticking with its process of shrinking its balance sheet to a more normal level, though the dollar pushed higher as he said they would be patient and flexible with interest rates, it said.
Kenanga IB Research said Asian markets were mostly lower as optimism over the recently concluded US-China trade talks were muted by lower-than-expected Chinese inflation data.
The research house said that bucking the regional trend, the FBM KLCI gained 11.05 points or 0.66% to close at 1,678.88.
“Despite the gain yesterday, we continue to believe that the local index is likely to trade with a downside bias supported by still thin trading volume and weaknesses seen in momentum indicators.
“Continuous negative momentum will see it trend closer to its support level at 1,615 (S1) with a break below, will then see the index capitulate towards 1,600 (S2).
“Should the index be able to close above the 1,700 (R1) level, outlook will then be bullish with next resistance found at 1,750 (R2),” it said.