KLCI rebounds as global trade war fears ease

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KUALA LUMPUR (March 6): The FBM KLCI climbed 5.75 points or 0.3%, mirroring Asian share gains today after US equities rose overnight. World shares rose as fears over a potential global trade war eased after US President Donald Trump faced growing pressure from political allies to pull back from the US' planned steel and aluminium import tax.

At Bursa Malaysia today, the KLCI closed at 1,848.37 points. The KLCI rebounded today after falling 13.45 points yesterday. Across Asia today, Japan’s Nikkei 225 rose 1.79%, South Korea’s Kospi gained 1.53% while Hong Kong’s Hang Seng increased 2.09%.

Reuters reported that Asian shares regained ground on Tuesday after Trump faced growing pressure from political allies to pull back from proposed steel and aluminium tariffs, easing investor worries about an imminent trade war. Sentiment was also supported by receding risk aversion in Europe with the euro gaining support from the creation of a coalition government in Germany and the impact of Italy's inconclusive election results limited to a mild sell-off in domestic bonds and stocks.

In Malaysia, JF Apex Securities Bhd senior analyst Lee Cherng Wee said: “The KLCI rebounded today in line with US markets but we expect the KLCI to see sideways movement in the near-term as the rally in US markets seems to be taking a breather. Besides that, there is not much catalyst for the KLCI currently,” said Lee.

Across Bursa Malaysia, top gainers included KLCI-linked Nestle (M) Bhd, Press Metal Aluminium Holdings Bhd and Maxis Bhd.
The most-active stock was HB Global Ltd with some 307 million shares traded. HB Global shares rose 2.5 sen to 27 sen.