FBM KLCI closes higher on optimism over US-Mexico trade deal

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KUALA LUMPUR (Aug 28): The FBM KLCI continued with its strong momentum with sentiment further lifted by external optimism on news of the United States-Mexico trade deal.

The key index ended the day up 15.30 points or 0.84% to a new three-month high of 1,826.90.

On the broader market, decliners led gainers by 512 to 350, with 473 counters traded unchanged. About 2.57 billion shares worth RM2.29 billion were traded.

TA Securities technical analyst Stephen Soo said the market's rise was supported by buying in selected stocks such as Nestle (M) Bhd, which closed 70 sen higher, and Daiman Development Bhd, which closed up 65 sen.

Soo said the market will eventually come to a consensus regarding the US-Mexico trade deal, given that this would put China at a disadvantage.

"[News of the trade deal] has lifted US equities to a record high, but I believe the market is currently overshooting. So I believe a correction is due to more realistic levels," he told theedgemarkets.com.

Across the region, Japan's Nikkei breached 23,000 on the trade deal announcement before shedding most gains on profit taking, but still ending the day at its highest close since mid-June. The Nikkei closed the up 0.1% at 22,813.47.

China's Shanghai Stock Exchange Composite closed 0.1% lower at 2,777.98, while Hong Kong's Hang Seng closed higher by 0.28% at 28,351.62.