Select blue chips lift KLCI in early trade

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KUALA LUMPUR (Sept 11): The FBM KLCI edged up in early trade on Thursday lifted by select blue chips, but the local market is expected to trade in a tight range range in the near term.

At 9.05am, the index added 3.10 pointgs to 1,873.95.

Gainers led losers by 164 to 59, while 170 counters traded unchanged. Volume was 101.25 million shares valued at RM43.71 million.

The top gainers included United Plantations, Petronas Gas, Petronas Dagangan, Lysaght, Hong Leong Bank, UMW,Maybank, Tasek, Goh Ban Huta and Press Metals.

Meanwhile, Asian shares edged down on Thursday as investors were wary of the geopolitical implications of a planned speech by U.S. President Barack Obama, while the dollar held close to fresh six-year highs against the yen, according to Reuters.

Obama will deliver a speech late on Wednesday (0100 GMT Thursday) in which he will vow to attack Islamic State militants "wherever they exist," lay out a strategy for expanding U.S. air strikes in Iraq and, for the first time, strike targets in Syria, it said.

Hong Leong IB Research said that amid lack of domestic catalysts, it maintained its near term tight range bound consolidation outlook on Bursa Malaysia ahead of the widely focus monetary policies meetings of FOMC (16-17 Sep) and Bank Negara (18 Sep).

“Overall, any unfavourable hawkish tone on Fed’s future interest rate hike timeframe and should Bank Negara decided to introduce another hike in its overnight policy rate could usher in wild swings into the markets.

“Near term technical resistances are 1876-1886 and supports fall on 1850-1860,” it said.