KLCI up 0.49% to regain 1,600-point threshold

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KUALA LUMPUR (Aug 14): The FBM KLCI rose 0.49% to regain the 1,600-point threshold at mid-morning today, as the local index advanced in tandem with global equity markets.

At 10.05am, the FBM KLCI rose 7.78 points to 1,600.66.

Gainers led losers by 270 to 123, while 245 counters traded unchanged. Volume was 639.73 million shares valued at RM253.94 million.

The gainers included Hong Leong Industries Bhd, Allianz Malaysia Bhd, British American Tobacco (M) Bhd, SAM Engineering & Equipment (M) Bhd, Hong Leong Bank Bhd, Guan Chong Bhd, Tenaga Nasional Bhd and Public Bank Bhd.

The actives included Green Packet Bhd, Vsolar Group Bhd, Datasonic Group Bhd, KNM Group Bhd, Ta Win Holdings Bhd and Jadi Imaging Holdings Bhd.

The decliners included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, Petronas Dagangan Bhd, Heineken Malaysia Bhd, Genting Plantations Bhd and Malaysia-listed Hang Seng Index-linked put warrants.

Asian shares joined a global equities rally and safe-haven government bonds pulled back on Wednesday, after Washington delayed tariffs on some Chinese imports in much-needed relief for markets gripped by political and economic turmoil, according to Reuters.

Wall Street stocks soared overnight as US President Donald Trump backed off his Sept 1 deadline for 10% tariffs on the remaining Chinese imports, delaying duties on cell phones, laptops and other consumer goods in the hope of blunting their impact on US holiday sales, it said.

Hong Leong IB Research said given the delay of tariffs on selected Christmas season products such as electronic gadgets, buying interest could sustain over the near term on Wall Street.

"Also, optimism on the trade discussion has reignited as Vice Premier Liu He agreed with USTR (US Trade Representative) Robert Lighthizer and Treasury Secretary Steven Mnuchin to speak again by phone within the next two weeks and both the US and Chinese officials may still meet in early September as scheduled.

"With the relief rebound on Wall Street after the USTR's Office announced the decision of delaying tariffs on selected Chinese products, we expect the feel-good sentiment could spill over towards stocks on the local front and the FBM KLCI may reclaim above the 1,600 psychological level.

"Also, technology sector is likely to anticipate an increase in trading activities on the back of this announcement. However, the upside could be limited with the unresolved geopolitical tensions in Hong Kong," it said.