FBM KLCI up 9.31pts on US-Mexico trade agreement

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KUALA LUMPUR (Aug 28): The FBM KLCI rose 9.31 points or 0.51% as the US-Mexico trade agreement eased global concerns over the US's stance on world trade.

Reuters reported that Japan's Nikkei surged to 11-week highs in the morning after a trade agreement reached between US and Mexico lifted investor risk sentiment and triggered buying in automakers. At Bursa Malaysia, the KLCI settled at 1,820.91 points at 12:30pm amid positive technical indicators.

"The MACD (moving average convergence/divergence) indicator has issued a 'buy' signal and both the RSI (relative strength index) and stochastic oscillators are on a recovering trend," Hong Leong Investment Bank Bhd head of retail research Loui Low wrote in a note.

"We see potential upward bias on the key index to retest the 1,830 to 1,840 levels. Support will be located around 1,790," Low said.

Across Bursa Malaysia, 1.55 billion shares worth RM1.02 billion were traded.

The top active counter was Sapura Energy Bhd while Daiman Development Bhd was the leading gainer. Top decliner was British American Tobacco (M) Bhd.