KUALA LUMPUR (July 29): The FBM KLCI added 0.35% in the mid-morning in cautious trade against a backdrop of lower regional markets.
At 10am, the KLCI was 5.69 points higher at 1,615.63.
Broader market sentiment was cautious with 407 losers and 344 gainers, while 377 counters traded unchanged. Trading volume was 2.82 billion shares valued at RM1.48 billion.
The gainers included Nestle (Malaysia) Bhd, Rubberex Corp (M) Bhd, DKSH Holdings (Malaysia) Bhd, Kossan Rubber Industries Bhd, Euro Holdings Bhd, Syarikat Takaful Malaysia Keluarga Bhd, Comfort Gloves Bhd and PPB Group Bhd.
The actively traded stocks included XOX Bhd, Key Alliance Group Bhd, Borneo Oil Bhd, MQ Technology Bhd, Iris Corp Bhd and Hubline Bhd.
The decliners included IHH Healthcare Bhd, Panasonic Manufacturing Malaysia Bhd, Petronas Dagangan Bhd, Scientex Bhd, Frontken Corp Bhd, ViTrox Corp Bhd and Ta Ann Holdings Bhd.
Reuters said Asian equities pulled backed today as an impasse in US economic stimulus negotiations pushed global stocks lower and sent investors into safe-haven assets like gold, which hovered near record highs.
US President Donald Trump said yesterday he did not support everything in a US$1 trillion (RM4.25 trillion) Senate Republican coronavirus relief proposal the day after it was unveiled by majority leader Mitch McConnell, although he indicated talks were continuing, it said.
Hong Leong Investment Bank (HLIB) Research said in the short term, rotational buying interest in technology, Covid-19 winner and government-linked company (GLC)/politically-linked stocks are expected to sustain the buoyant trading activity on Bursa Malaysia, thanks to an ample liquidity flush, overshadowing by subdued fundamentals such as tit-for-tat actions between the US and China, fluid domestic politics, rising new daily Covid-19 cases, expectations of worsening reported numbers for the second quarter of 2020 (both gross domestic product and corporate results) and growing speculation about the 15th general election (GE15) by end-2020.
“Technically, a successful breakout above the 1,617 neckline resistance would spur index higher towards the 1,640-1,650 zones, while a sharp fall to below 1,563 would trigger further selldown in 1,530-1,550 territory,” it said.