KLCI seen trading range-bound, stay above 1,720 level

-A +A

KUALA LUMPUR (Nov 20): The FBM KLCI is seen trading range-bound today with a tight band, but hover above the 1,720-level as investors mat take heart from the country’s firm economic performance last quarter.

But local investor sentiment may be dented by the weaket close at Wall Street as efforts for U.S.tax law reform remains cloudy.

Malaysia's third quarter gross domestic product (3Q GDP) growth exceeded economists' expectations as it grew by 6.2%, driven by robust private sector spending while public sector remained supportive of growth, according to Bank Negara Malaysia last Friday.

The U.S. dollar was lower on Friday along with Wall Street stocks as investors pulled back from technology stocks and were skeptical President Donald Trump's Republican party would succeed in its efforts at overhauling U.S. tax law, according to Reuters.

U.S. Treasury yields edged lower, in line with declines in U.S. stock indexes and German 10-year bond yields, as risk appetite faded. The yield curve continued to flatten after strong U.S. housing starts data for October and investors bet on further rate hikes from the Federal Reserve, it said.

The Dow Jones Industrial Average fell 100.12 points, or 0.43 percent, to 23,358.24, the S&P 500 lost 6.79 points, or 0.26 percent, to 2,578.85 and the Nasdaq Composite dropped 10.50 points, or 0.15 percent, to 6,782.79, said Reuters.

Based on corporate announcements and news flow last Friday, stocks in focus today may include: Kejuruteraan Asastera Bhd, Axiata Group Bhd, MRCB-Quill REIT, Petronas Dagangan Bhd, Tenaga Nasional Bhd, Far East Holdings Bhd, IOI Corp Bhd, OSK Ventures International Bhd, Heng Huat Resources Group Bhd and GuocoLand (Malaysia) Bhd.