KUALA LUMPUR (June 21): The FBM KLCI closed up 6.8 points or 0.41% at its intraday high after an 11th-hour jump while share-trade value across Bursa Malaysia topped RM3 billion amid expectation that a US interest rate cut as soon as next month will bode well for Malaysian assets.

Lower US interest rates bode well for Asian markets in anticipation that global fund managers will shift their money into higher-yielding Asian assets such as stocks, bonds and currencies.

At 5pm, the KLCI closed up at 1,682.23 points as investors also took cue from news US President Donald Trump will meet Chinese President Xi Jinping at the G20 summit later this month to resume trade negotiations.

"The positive external tone due to optimism over a US-China trade deal and the US Federal Reserve's leaning towards interest rate cuts to stimulate the economy should sustain further gains, but expect some profit-taking due to overbought momentum ahead of the weekend," TA Securities Holdings Bhd wrote in a note earlier today.

Areca Capital Sdn Bhd chief executive officer Danny Wong is mindful of lingering geopolitical uncertainties affecting market sentiment as he takes into account the US-China trade war and US-Iran political tension.

Iranian officials were quoted as telling Reuters on Friday that Tehran had received a message from Trump through Oman overnight warning that a US attack on Iran was imminent. It was reported that they spoke shortly after the New York Times reported that Trump had approved military strikes against Iran on Friday in retaliation for the downing of a US surveillance drone, but called off the attacks at the last minute.

Wong told theedgemarkets.com: “The risks are still fragile sentiment and geopolitical events, as we do not know how the US and China presidents' meeting will turn out. There are also fresh issues with Iran.”

Across Bursa Malaysia today, 2.22 billion shares worth RM3.05 billion were traded. Yesterday, 2.27 billion shares were transacted for RM2.28 billion.

Today, top gainers included KLCI stock Hong Leong Bank Bhd, the price of which spiked at the 11th hour to spur the KLCI to its intraday high. Hong Leong Bank closed up 50 sen at RM19.50.