KUALA LUMPUR (Feb 13): The FBM KLCI reversed its earlier losses and edged higher at mid-morning today.
At 10am, the FBM KLCI was up 0.25 points to 1,687.66. The index had earlier slipped to a low of 1,685.62.
Gainers led losers by 299 to 189, while 284 counters traded unchanged. Volume was 698.01 million shares valued at RM314.8 million.
The gainers included United Plantations Bhd, RHB Bank Bhd, Chin Teck Plantations Bhd, Petron Malaysia Refining & Marketing Bhd, Syarikat Takaful Malaysia Keluarga Bhd, Serba Dinamik Holdings Bhd, Mega First Corp Bhd and Hong Leong Financial Group Bhd.
The actives included Tatt Giap Group Bhd, Bumi Armada Bhd, My EG Services Bhd, Eastern & Oriental Bhd, Barakah Offshore Petroleum Bhd, Orion IXL Bhd, Velesto Energy Bhd and Seacera Group Bhd.
The decliners included Batu Kawan Bhd, British American Tobacco (M) Bhd, LPI Capital Bhd, Petronas Dagangan Bhd, UMW Holdings Bhd, Malaysia Airports Holdings Bhd and Astro Malaysia Holdings Bhd.
Meanwhile, shares of Eastern & Oriental Bhd (E&O) rebounded this morning, up 5.29%, despite recording its biggest single day fall yesterday after announcing it would plan a cash call to raise as much as RM550.3 million.
As at 10am, the stock rose 4.5 sen to 89.5 sen with 25.26 million shares in active trade.
On Monday, E&O said it is proposing a cash call to raise as much as RM550.3 million via a private placement and renounceable rights issue to fund its property development projects.
Following the announcement, shareholders reacted negatively with a heavy selldown that pulled down its share price by 22.02% or 24 sen to an eight-year low of 85 sen yesterday.
Subsequently, trading in the shares of E&O was suspended for the rest of the day, given the drop in the property developer’s share price amid the group’s announcement of a fundraising exercise.
Asian stocks pulled ahead and safe-haven government bonds came under further pressure on Wednesday on optimism the United States and China might be able to hammer out a deal to resolve their nearly year-long trade dispute, according to Reuters.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2%, it said.
Hong Leong IB Research said with the slight relief from US President Donald Trump’s statement coupled with the US government evading another round of shutdown, there could be potential upside movement in Wall Street over the near term.
“However, as the technical readings are suggesting an overbought position on the Dow, upside may be limited following the sharp V-shape rebound started since December. Traders would focus closely on the trade headlines for any fresh developments to determine the direction of the markets.
“Tracking the positive performances on Wall Street, we expect it may spill over to the local bourse, eventually lifting the FBM KLCI to retest the 1,700 level.
“Traders may lookout for opportunities within O&G sector as the Brent oil prices have steadied above US$60 as well as the ongoing reporting season in order to gauge the future direction of the share prices,” it said.