KLCI advances 0.74% after Budget announcement

KLCI advances 0.74% on firm post-Budget rally

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KUALA LUMPUR (Oct 14): The FBM KLCI rose 0.74% at mid-morning in its firm post-Budget rally as well as improved regional sentiment on the progress of the US-China trade talks.

At 10.05am, the FBM KLCI rose 11.58 points to 1,568.42.

Gainers led losers by 324 to 199, while 328 counters traded unchanged. Volume was 904.58 million shares valued at RM383.01 million.

The gainers included MISC Bhd, Hong Leong Bank Bhd, Hong Leong Financial Group Bhd, British American Tobacco (M) Bhd, Amway (M) Holdings Bhd, AME Elite Consortium Bhd, Petronas Gs Bhd, Heineken Malaysia Bhd, SAM Engineering & Equipment (M) Bhd and Malaysia Pacific Industries Bhd.

The actives included NetX Holdings Bhd, Green Packet Bhd, Sapura Energy Bhd, Bumi Armada Bhd, AME Elite, Vsolar Group Bhd and Ekovest Bhd.

The decliners included Genting Plantations Bhd, Syarikat Takaful Malaysia Keluarga Bhd and Malaysia-listed Hang Seng Index-linked put warrants.

Asian share markets pushed higher on Monday as signs of progress in the Sino-US trade standoff whetted risk appetites, while pressuring safe-haven bonds and the yen, according to Reuters.

Liquidity was lacking, however, with Japan off and a partial market holiday in the United States for Columbus Day. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.5%, it said.

Kenanga IB Research said that last Friday, Asian stocks ended mostly higher as investors are optimistic for a potential partial trade deal.

It said back home, the FBM KLCI gained 4.97 points (+0.32%) to close at 1,556.84, bringing week-on-week loss to -0.05%.

"Chart-wise, underlying trend remains bearish as the index is trading below all the key SMAs (simple moving averages).

"Coupled with uninspiring key momentum indicators, we believe that the index may trend lower to find support levels at 1,550 (S1) and 1,510 (S2).

"Conversely, overhead resistance levels can be found at 1,630 (R1) and 1,650 (R2)," it said.