KLCI crosses 1,600-point threshold as Public Bank, Tenaga lift

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KUALA LUMPUR (Aug 19): The FBM KLCI crossed the crucial 1,600-point threshold in early trade this morning, tarcking gains at regional markets, lifted by gains including at key index-linked counters.

At 9.05am, the FBM KLCI gained 0.93 points to 1,600.15.

The early gainers included Hong Leong Bank Bhd, Public Bank Bhd, Carlsberg Brewery Malaysia Bhd, Bursa Malaysia Bhd, Syarikat Takaful Malaysia Keluarga Bhd, Petronas Gas Bhd, Guan Chong Bhd, Petronas Dagangan Bhd and Tenaga Nasional Bhd.

Stocks in Asia were set for gains Monday following a bounce in U.S. equities as traders kick off a busy week for economic data and await commentary from the Federal Reserve chief, according to Bloomberg.

Futures pointed higher in Japan, Hong Kong and Australia. U.S. contracts rose after a positive close in the S&P 500 Index helped by speculation European officials will bolster stimulus if growth in the region continues to sputter. Treasuries yields recovered from multiyear lows Friday, after an inversion in the yield curve earlier in the week. The yen and yuan were steady early Monday, it said.

CGS-CIMB Retail Research said the local barometer shrank 15.8 points week-on-week as investors were increasingly worried about a global economic recession.

It said the KLCI plunged at the opening bell in a gap down before rebounding to close strongly on Thursday.

“On Friday, the sellers pushed prices lower again but the buyers managed to lift the benchmark back to breakeven at the close.

“The swift rebounds which happened on both days suggest that selling activities based on the latest unfavorable events were temporarily well absorbed.

“Coupled with the better-than-expected Malaysia’s 2Q GDP growth and a Hammer candlestick on Friday, the index may stage a relief rebound this week. Resistance: 1,620 & 1,640. Support: 1,589 & 1,572,” it said.