KUALA LUMPUR (Oct 11): The FBM KLCI got off to a muted start Friday, lifted by select index-linked blue chips, with an expected budget rally seen propping the KLCI.

At 9.05am, the FBM KLCI added 0.03 points to 1,551.90.

The gainers included Nestle (M) Bhd, MISC Bhd, Aeon Crdit Service (M) Bhd, Gun Chong Bhd, Magnum Bhd, Cypark Resources Bhd, Public Bank Bhd, Telekom Malaysia Bhd and Heitech Padu Bhd.

Asian stocks looked set to gain as high-level U.S.-China trade talks progressed into a second day and optimism grew that a truce can be achieved. Treasury yields jumped and U.S. equities climbed, according to Bloomberg.

Shares opened higher in Sydney, while futures rose in Tokyo and Hong Kong. U.S. contracts extended gains after President Donald Trump said discussions with Chinese counterparts are going “really well” and that they will continue on Friday. Ten-year Treasury yields rose to 1.67%, while the yuan climbed. The dollar declined. The pound surged on talk of a Brexit deal, it said.

CGS-CIMB Retail Research said all attention will be on the Budget 2020, which will be tabled today.

It said the Budget 2020 is likely to be mildly positive for KLCI as the budget has historically been seen as a catalyst for the market.

“A budget rally may take place today. However, any positive effect from Budget may be offset by concerns over slower global growth from the ongoing trade war, which will likely dampen corporate earnings.

“On the external front, Trump issued positive remarks on the US-China trade talks.

“Meanwhile, we see construction as one of the potential beneficiaries of Budget 2020. Construction companies like Gamuda Bhd and Gabungan AQRS Bhd may benefit from higher development expenditure. Resistance: 1,572 & 1,580. Support: 1,540 & 1,500,” it said.