Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 12): The FBM KLCI ticked up in early trade this morning, in line with the advance at regional markets, but gains were seen capped.

At 9.05am, the FBM KLCI was 4.02 points higher to 1,656.65.

The early gainers included Kuala Lumpur Kepong Bhd, Hong Leong Industries Bhd, Public Bank Bhd, Petronas Gas Bhd, PPB Group Bhd, Cypark Resources Bhd, Top Glove Corp Bhd, Petronas Chemicals Group Bhd and Scientex Bhd.

Asian stock markets edged ahead on Wednesday as U.S. President Donald trump sounded upbeat about a trade deal with China, while sterling struggled with talk of an imminent party coup against British Prime Minister Theresa May, according to Reuters.

In an interview with Reuters, Trump said talks were taking place with Beijing by phone and he would not raise tariffs on Chinese imports until he was sure about a deal, it said.

Hong Leong IB Research in a traders’ brief said  despite China agreeing on the reduction of auto tariffs, it remains unknown of when the change would goes into effect.

“Hence, the volatile movement may persist amid the ongoing trade tensions between the US and China. Also, with President Trump threatened to shut down government if Congress doesn’t fund his proposed Mexico wall would pose further knee jerk reaction towards stock markets.

“On the local bourse, we expect the bearish tone may extend this week as news headlines are still in the negative mood.

“Hence the downside risk outweighs the upside reward at this juncture. With that, traders may lookout for opportunities within the defensive stocks with high potential dividend yield to be paid out in the future,” it said.

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