KLCI ticks up in line with region, gains seen capped

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KUALA LUMPUR (Oct 29): The FBM KLCI ticked up in early trade this morning, tracking the regional markets, but gains are seen capped ahead of the tabling of Budget 2019 this Friday.

At 9.05am, the FBM KLCI was up 2.71 points to 1,685.77.

The early gainers included Allianz Malaysia Bhd, United Plantations Bhd, Lingkaran Trans Kota Holdings Bhd, IHH Healthcare Bhd, Selangor Properties Bhd, Cahya Mata Sarawak Bhd, Tenaga Nasional Bhd and Country View Bhd.

Asian stocks edged higher with US stock futures, indicating some respite from the recent global sell-off at the start of the week. The US dollar steadied and Treasury yields were little changed, according to Bloomberg.

Shares in Japan, Australia and South Korea rose, while Hong Kong and China futures pointed to a higher start. US futures advanced after the S&P 500 finished on Friday just short of a 10% decline from its record September high and on pace for the worst month since 2009. The offshore yuan held near the lowest level in a decade amid expectations China will ease policy to stem a growth slowdown, it said,

Hong Leong IB Research in a traders’ brief said although market participants have returned to stock markets yesterday, the research house believe it could be short lived as the worries on trade war (dampening the global economic activities) as well as the interest rate up-cycle environment could resurface in the upcoming months.

“Meanwhile, over the near term, Wall Street is likely to trend sideways ahead of the US midterm election.

“On the local bourse, sentiment may stay tepid following the recent selling pressure and investors may still wait for further clarity in Budget 2019 next week before expanding their exposure in stock markets.

“Hence, we think rebound would be short lived over the near term and upside should be capped near the 1,700,” it said.