KLCI up at 11th hour as Bursa technology stocks rise on iPhone 11 news

KLCI up at 11th hour as Bursa technology stocks rise on iPhone 11 news
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KUALA LUMPUR (Oct 7): The FBM KLCI settled up 1.33 points or 0.09% today at 1,559 after clawing back to positive territory at the 11th hour as global investors anticipated US-China trade talks this week and evaluated the US' latest employment data.

Today, Bursa Malaysia technology stocks rose in an apparent response to news that Apple Inc would ramp up production of iPhone 11 models.

At 5pm, the KLCI closed up after falling to its intraday low of 1,555.55.

Bursa's technology index, which includes semiconductor manufacturers, ended up 0.67 point or 1.83% at 37.25.

Across Bursa Malaysia, 2.17 billion shares worth RM1.33 billion were traded.

Top gainers included semiconductor manufacturers Malaysian Pacific Industries Bhd and Unisem (M) Bhd.

The most-active stocks included newly-listed SDS Group Bhd, which registered a volume at some 109 million shares. ACE Market-listed SDS Group's share price closed up 2.5 sen at 25.5 sen from the stock's initial public offering price of 23 sen a share.

Globally, Reuters reported that Asian shares edged higher on Monday after data showed the US unemployment rate dropped to the lowest in almost 50 years, easing concerns of a slowdown in the world's largest economy.

It was reported that sentiment towards the US economy deteriorated sharply much of last week after disappointing data on manufacturing and services suggested the trade war was taking a toll, and more rate cuts would be needed to avert a potential recession in the world's biggest economy.

"But a modest September increase in US jobs, announced on Friday, eased some of these concerns and lifted US markets that day. The US unemployment rate fell to 3.5% in September to reach the lowest since December 1969. Non-farm payrolls also grew in September, but slightly less than expected," the newswire said.

In Malaysia today, TA Securities Holdings Bhd wrote in a note earlier that the KLCI, which was deemed oversold, could be ripe for technical rebound.

"Technical trend indicators for the KLCI have turned decisively more bearish following last week's breakdown to close below key pivot low supports, pointing to more potential for significant losses ahead. Nonetheless, for this coming week, given the extreme oversold conditions triggered by last week's severe sell-down, we do not discount good possibility for a technical rebound to correct the oversold momentum.

"Additionally, the local market should also bounce back along with regional peers early this week following the US stock market's positive reaction to the closely watched September US jobs monthly report last Friday, which was robust enough to damp recession fears, but weak enough to encourage the Federal Reserve to again cut interest rates later this month," TA Securities said.

US-China trade talks will be closely watched. CNBC reported, citing sources, that the next round of the talks would be held from Thursday to Friday (Oct 10 to 11).

The outcome from this week's trade discussions "will likely be pivotal in determining if the two sides can reach an interim trade deal that postpones further tariff escalation," analysts at Eurasia Group were quoted as writing in a note.