KLCI to cautiously start week on positive note in line with global gains

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KUALA LUMPUR (June 4): The FBM KLCI is expected to start the week on a positive note today, in line with the gains at most global markets last Friday.

However, global markets may turn cautious as U.S. President Donald Trump last week revived a plan to slap tariffs on US$50 billion of Chinese imports.

“If the U.S. rolls out trade measures including tariffs, all the agreements reached in the negotiations won’t take effect,” state-run Xinhua News Agency reported Sunday, citing a statement from the Chinese team that met with a U.S. delegation led by Commerce Secretary Wilbur Ross, according to Bloomberg.

Meanwhile, world stocks and the U.S. dollar rose while Treasury debt prices fell on Friday as investors welcomed a stronger-than-expected American jobs report and an apparent end to a political crisis in Italy, although prospects for a full-blown global trade war limited the gains, according to Reuters.

The MSCI All-Country World index, which tracks shares in 47 countries, gained 0.81 percent. Still, it was set for a third week of losses, brought on by earlier risks of a snap election in Italy, it said.

The Dow Jones Industrial Average rose 219.37 points, or 0.9 percent, to 24,635.21, the S&P 500 gained 29.35 points, or 1.08 percent, to 2,734.62 and the Nasdaq Composite added 112.22 points, or 1.51 percent, to 7,554.33, said Reuters.

Based on corporate announcements and news flow last Friday, stocks in focus today may include Econpile Holdings Bhd, Pasdec Holdings Bhd, MyEG Services Bhd, Time dotCom Bhd, Tune Protect Group Bhd, Berjaya Sports Toto Bhd, Tropicana Corp Bhd and AmanahRaya Real Estate Investment Trust.