FBM KLCI up 11.34 points on improved sentiment despite lingering China-US trade concerns

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KUALA LUMPUR (Aug 7): The FBM KLCI rose 11.34 points or 0.64% today as Asian shares took cue from China's share rise and global crude oil price gains. US equities' overnight advance also supported Asian stocks today.

At Bursa Malaysia, the KLCI finished at 1,791.09 points. Analysts said investor sentiment appeared to have improved amid Malaysia's current corporate financial reporting season and as foreign investors became net buyers of local shares.

“Corporate results have been within expectations, they are looking quite alright for a start and have generally showed improvements from the previous quarter,” Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com.

Lau observed that foreign investors’ confidence seemed to have returned as they were net buyers of Malaysian shares today, although the trade tension between the US and China persisted.

Across Bursa Malaysia, 2.53 billion shares worth RM2.33 billion were crossed. Top gainers included oil and gas entities Petronas Gas Bhd and Hengyuan Refining Co Bhd.

Asian bourses closed higher. In China, the Shanghai Stock Exchange Composite and Hong Kong’s Hang Seng rose 2.74% and 1.54% respectively. Elsewhere in the region, Japan’s Nikkei 225 and South Korea’s Kospi finished 0.69% and 0.6% higher respectively.

Reuters reported that a rebound in battered Chinese stock markets on Monday helped lift Asian equities, which also drew support from earnings-led gains on Wall Street in a welcome relief for investors grappling with an intensifying Sino-US trade conflict.

It was also reported that oil prices rose on Tuesday with revived US sanctions against major crude exporter Iran expected to tighten global supply. Brent crude oil futures were up 50 cents to US$74.25 per barrel at 0928 GMT and US West Texas Intermediate (WTI) crude futures were up 29 cents at US$69.30 a barrel.