KUALA LUMPUR (Oct 15): The FBM KLCI drifted lower in early trade on some mild profit taking activities as the underlying trend for the local index stayed bearish.

At 9.05am, the FBM KLCI shed 0.05 points to 1,567.54.

The early decliners included Hong Leong Financial Group, Hong Leong Bank Bhd, Petronas Dagangan Bhd, Petronas Chemicals Group Bhd, KLCC Property Holdings Bhd, UMW Holdings Bhd, Tenaga Nasional Bhd, DiGi.Com Bhd and Press Metal Aluminium Holdings Bhd.

Asian stocks rose, with the biggest gains in Japan, as investors continued to mull trade negotiations after China said it wanted more talks before signing a deal. Treasuries rose and the dollar was steady, according to Bloomberg.

Japan’s shares jumped as they opened after a holiday in a catch-up move to positive U.S.-China trade progress Friday. Australian and Korean shares were little changed. S&P 500 Index futures edged higher after the benchmark fluctuated most of Monday as China appeared to pour cold water on a pact touted by President Donald Trump, with people familiar with the situation saying it wanted to iron out details before signing it. Volumes were about 28% below average, it said.

CGS-CIMB Retail Research said the FBMKLCI staged a post-Budget rally yesterday as the Malaysia post-Budget 2020 Forum may have given market sentiment a boost, in our opinion.

It said the overall performance across the board was also positive thanks to the optimism on the partial US-China trade deal.

“Barring any negative events coming from the external front, the index should continue to rise further today. Resistance: 1,580 & 1,600. Support: 1,540 & 1,500,”it said.