KLCI edges higher but gains seen limited

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KUALA LUMPUR (Jan 19): The FBM KLCI edged higher in early trade on Monday, but gains may be capped as local investor sentiment remains guarded on lackof fresh catalysts.

At 9am, the FBM KLCI rose 1.93 points to 1,745.50.

The top gainers included British American Tobacco (M) Bhd, United Plantations Bhd, Uzma Bhd, Goh Ban Huat Bhd, SapuraKencana Petroleum Bhd, UMW Oil and Gas Corporation Bhd, Taliworks Bhd, Kulim (M) Bhd, Genting Bhd and Petronas Dagangan Bhd.

Asian share markets were looking to edge higher on Monday, though anxious investors were wary of being disappointed yet again by economic news from China and policy stimulus in the euro zone, according to Reuters.

A holiday in the United States could make for thin conditions at the start of a week littered with major data and a crunch policy meeting for the European Central Bank, it said.

Oil prices started with a soft tone as Brent crude futures eased 29 cents to $49.88, while U.S. crude lost 31 cents to $48.38 a barrel, said Reuters.

BIMB Securities Research in a market preview Monday said Asian equities were quite mixed amid some foreign outflows last Friday.

It said locally, the FBM KLCI was 1.43 points lower at 1,743.57 attributed to yet further net foreign outflow of RM371.2 million last Friday.

“Year-to-date total foreign outflows have had totalled RM2 billionn and still counting.

“Nonetheless, we expect domestic liquidity to maintain its support for the local bourse with the immediate resistance at 1,750,” it said.