KLCI trends higher, gains seen capped

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KUALA LUMPUR (April 12): The FBM KLCI trended higher this morning but gains are seen capped in line with global markets.

At 9.05am, the FBM KLCI rose 3.14 points to 1,873.03.

The early gainers included Fraser & Neave Holdings Bhd, Heineken Malaysia Bhd, Axiata Group Bhd, Tenaga Nasional Bhd, Globetronics Technology Bhd, Kuala Lumpur Kepong Bhd and MMS Ventures Holdings Bhd.

Asian stocks came under pressure on Thursday as the threat of imminent U.S. military action in Syria rattled investors and sent oil prices to their highest levels since late 2014 on concerns about supply, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.05 percent in early trade while Japan's Nikkei dropped 0.4 percent, it said.

JF Apex Securities Research in a market preview today said US markets tumbled overnight due to concerns of a possible missile strike on Syria after President Trump taunted Russia on Twitter.

It said European markets also ended lower after declines in chemicals, banking and travel & leisure counters as investors welcome the beginning of the reporting season.

“On the local market, the FBM KLCI rose 8.91 points to extend its rebound to 1869.89 points.

“Following the negative performance in the US and Europe, the FBM KLCI is expected to take a breather from its rebound rally and consolidate below the resistance of 1880 points,” it said.