KUALA LUMPUR (Feb 11): The FBM KLCI edged up cautiously, tracking regional markets, lifted by gains including at Tenaga Nasional Bhd and Malayan Banking Bhd (Maybank).
At 9.05am, the FBM KLCI was up 2.22 points to 1,688.74.
The early gainers included United Plantations Bhd, Nestle (M) Bhd, Hong Leong Bank Bhd, Utusan Melayu (Malaysia) Bhd, Mega First Corp Bhd, Tenaga Nasional, Maybank and Syarikat Takaful Malaysia Keluarga Bhd.
Stocks began the week on a cautious note as doubts on the possibility for progress ahead of a potentially pivotal week for U.S.-China trade talks crept back into markets, according to Bloomberg.
Resurgent worries on global growth are driving bonds higher and threatening to dent this year’s rally in riskier assets, with equities dipping last week. Shares in Sydney edged lower, while Korean stocks were little changed. Futures indicated a lower start for equities in Hong Kong. Chinese exchanges reopen after a one-week holiday during which a gauge of the country’s firms traded in Hong Kong fell. Japan is shut for a holiday, so Treasuries won’t trade until the London open after 10-year yields edged down to 2.63 percent last week, it said.
Kenanga IB Research said Asian stock markets ended the week lower last Friday, following overnight losses on Wall Street, as concerns loom over the outcome of the trade talk.
It said that similarly, the FBMKLCI fell 6.87 points (-0.41%) to close at 1,686.52, narrowing week-on-week gain to a mere 0.18% on thin trading volume due to the Lunar New Year festive holidays.
“We maintain our neutral outlook, as the index remains above the 20 and 50-day SMAs but other momentum indicators are starting to show signs of slowing down.
“A positive outcome from the trade talk will see the index trend higher to its resistances 1,730 (R1) and 1,800 (R2),” it said.