KUALA LUMPUR (July 19): The FBM KLCI climbed 0.25% in early trade this morning, tracking the overnight advance at Wall Street, lifted by gains at select index-linked stocks.
Shares in ailing Scomi Group Bhd were actively traded after Tan Sri Wan Azmi Wan Hamzah and Gelombang Global Sdn Bhd (GGSB), a private vehicle of former Renong Bhd managing director Datuk Mohd Zakhir Siddiqy, have committed to invest RM42 million collectively in the firm.
At 9.05am, the FBM KLCI added 4.21 points to 1,653.14.
The gainers included Petronas Gas Bhd, Complete Logistics Holdings Bhd, Sime Darby Plantaions Bhd, Tenaga Nasional Bhd, IHH Healthcare Bhd, Public Bank Bhd and Can-One Bhd.
Meanwhile, Scomi rose 0.5 sen to 9.5 sen with 35.38 million shares traded.
The dollar edged up with Treasury yields, giving back some earlier losses, after the New York Federal Reserve said its President, John Williams, wasn’t sending a specific policy signal with earlier commentary that fueled bets on a half-point interest rate cut this month. Asia stocks tracked an advance in U.S. shares, according to Bloomberg.
Japanese and Korean stocks rose, with modest gains in Australia. The S&P 500 earlier climbed and Microsoft Corp. rallied in after-hours trading after sales topped estimates. Fed Vice Chairman Richard Clarida and New York Fed chief John Williams stressed the need to act quickly if the U.S. economy looked likely to stumble during the U.S. session. Then a spokesman for Williams said he did not intend to suggest the central bank might make a large interest rate cut at the end of this month, it said.
Kenanga IB Research said major Asian market continues to end lower as Trump statement on the trade war could impact corporate earnings with the FBMKLCI lost another 8.6 points (-0.52%) to close at 1,648.93.
It said chart-wise, the index has crossed below the 20- and 100-days SMAs likely due to lack of market catalyst and uncertainty from US-China’s trade friction.
“Meanwhile, signal from key indicator continue to appear uninspiring.
“From here, resistances can be found at 1,700 (R1).
“A break above should see the index trend higher towards 1,730 (R2). Conversely, downside supports can be identified at 1,630 (S1) and 1,600 (S2),” it said.