KLCI pares gains, up 0.23% as select blue chips lift

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KUALA LUMPUR (May 17): The FBM KLCI pared some of its gains at mid-morning but remained 0.23% in positive territory, lifted by select blue chips.

At 10am, the FBM KLCI was up 4.20 points to 1,862.46. The index had earlier risen to a high of 1,867.09.

Gainers led losers by 333 to 236, while 268 counters traded unchanged. Volume was 779.52 million shares valued at RM604.08 million.

The top gainers included British American Tobacco (M) Bhd, Dutch Lady Milk Industries Bhd, Ajinomoto (M) Bhd, Hong Leong Financial Group Bhd, PMB Technology Bhd, DKSH Holdings (M) Bhd, Carlsberg Brewery Malaysia Bhd, Padini Holdings Bhd, Petronas Gas Bhd and Petronas Dagangan Bhd.

The actives included My E.G. Services Bdh, George Kent (M) Bhd, Sapura Energy Bhd, Advance Synergy Bhd, Zeland Bhd and Nexgram Holdings Bhd.

The decliners included Danainfra Nasional Bhd, Kuala Lumpur Kepong Bhd, Tasek Corp Bhd, George Kent, Amway (M) Holdings Bhd, UMW Holdings Bhd, Batu Kawan Bhd, Heineken Malaysia Bhd, SP Setia Bhd and Gamuda Bhd.

Asian shares held steady on Thursday, while the euro struggled near five-month lows set a day earlier following a report that Italian populist parties trying to form a coalition could ask the European Central Bank to forgive 250 billion euros of debt, according to Reuters.

In equity markets, MSCI's broadest index of Asia-Pacific shares outside Japan was little changed, while Japan's Nikkei gained 0.4 percent and South Korea's KOSPI rose 0.4 percent, it said.

Hong Leong IB Research in a traders’ brief said the near term outlook on Wall Street could trade on a cautious tone with limited upside as the 10-year Treasury yield is hovering around the 7-year high area.

“Meanwhile, market participants may focus on small caps as the Russell 2000 (small cap index) was traded towards the all-time-high zone as analysts in the US viewed them as lower risk towards the recent trade war episode.

“With the confirmation of GST to be removed with effect from 1st of June by the Ministry of Finance, we anticipate consumer stocks to benefit out of this policy as the Rakyat generally will have higher disposable income to spend in the economy.

“Meanwhile, we think trading focus may emerge further on the export-oriented stocks as ringgit trended on a weaker note yesterday,” it said.