KUALA LUMPUR (Sept 20): The FBM KLCI rose 0.46% at mid-morning, tracking gains at the regional markets, lifted by select index-linked blue chips.
At 10am, the FBM KLCI rose 8.28 points to 1,808.99.
Gainers led losers by 314 to 177, while 260 counters traded unchanged. Volume was 512.99 million shares valued at RM312.97 million.
The gainers included British American Tobacco (M) Bhd, Hong Leong Bank Bhd, Hong Leong Financial Group Bhd, Hong Leong Industries Bhd, Ideal United Bintang International Bhd, Nestle (M) Bhd, Aeon Credit Service (M) Bhd, Kimlun Corp Bhd and Genting Malaysia Bhd.
The actives included Sapura Energy Bhd, Reach Energy Bhd, Nexgram Holdings Bhd, QES Group Bhd, Hibiscus Petroleum Bhd, Velesto Energy Bhd and My EG Services Bhd.
The decliners included Carlsberg Brewery Malaysia Bhd, Eita Resources Bhd, Padini Holdings Bhd, UMW Holdings Bdh and BIMB Holdings Bhd.
Asian stocks rose in early trade on Thursday following a second day of gains on global share markets amid easing investor concern over the impact from the U.S.-China trade war, but markets remained cautious, accoridng to Reuters.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.05 percent in early trade in Asia, taking support from Wall Street overnight, it said.
Hong Leong IB Research in a traders’ brief said as US-China remains stern and bold on their statements on the trade issues, the prospects for significant progress towards de-escalation in the short term are low.
However, it said the Dow may continue to grind higher in sideways pattern to retest 26616 (all-time high) as investors have repeatedly shrugged off the issue over the past several months, choosing instead to focus on signs of still robust economic fundamentals and corporate earnings, driven by Trump’s significant tax cut and fiscal stimulus. Immediate support is 26000 levels.
“The second consecutive rallies on Dow may boost KLCI to higher grounds today towards 1810-1818 zones, but we reiterate that sentiment is likely to remain cautious due the lack of domestic rerating catalysts, given the prospects of escalating US-China trade war, EM contagion risks, tightening financial conditions and expectations of further “belt-tightening budget 2019” to be tabled on 2 Nov.
“Unless KLCI can reclaim above congested resistances near 1810-1818 strongly, the index is likely to engage in extended consolidation mode with supports at 1763-1770,” it said.