KLCI pares gains but stays firmly above crucial 1,700-level

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KUALA LUMPUR (July 13): The FBM KLCI pared some of its gains at mid-morning but remained firmly above the crucial 1,700-point level, tracking the advance at regional markets.

At 10am, the FBM KLCI gained 7.47 points to 1,711.04. The index had earlier risen to 1,713.24.

Gainers led losers by 356 to 218, while 261 counters traded unchanged. Volume was 888.63 million shares valued at RM487.93 million.

The gainers included British American Tobacco (M) Bhd, Nestle (M) Bhd, Petronas Dagangan Bhd, Heineken Malaysia Bdh, Kossan Rubber Industries Bhd, Hong Leong Industries Bhd, George Kent (M) Bhd, Petronas Chemicals Group Bhd, Supermax Corp Bhd and SAM Engineering & Equipment Bhd.

The actives included Malaysian Resources Corp Bhd, My E.G.Services Bhd, George Kent, Nova MSC, WCT Holdings Bhd and Sino Hua-An International Bhd.

The losers included United Plantations Bhd, Malaysian Pacific Industries Bhd, Hong Leong Financial Group Bhd and Bumi Armada Bhd warrants.

Asian shares were higher on Friday following gains on Wall Street overnight, as concerns over an escalating U.S. trade war with China took a breather, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, building on a 0.6 percent rise on Thursday, after U.S. stocks ended the day higher, it said.

Hong Leong IB Research in a traders’ brief said in the US, most of the negative trade developments have already priced in at this moment and investors will be focusing on the 2Q earnings over the near term.

“However, should China retaliate with a bigger quantum on the trades, it will dampen the trading tone, capping the upside on global markets.

“With the healthy recovery on the FBM KLCI above 1,700, coupled with the positive surge on the overnight Wall Street, sentiments on the local front are likely to be more favourable on the broader market.

“Also, we may see further buying interest into construction stocks following the LRT3 resumption news,” it said.