KLCI kick starts 2H2019 on positive note, up 0.46% in line with regional rally

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KUALA LUMPUR (July 1): The FBM KLCI started off the first trading day of the second half of 2019 on a positive note and rose 0.46% in line with the rally at regional markets.

At 9.05am, the FBM KLCI  rose 7.76 points to 1,679.89.

The top gainers included Heineken Malaysia Bhd, Malaysian Pacific Industries Bhd, Tenaga Nasional Bhd, Pentamaster Corp Bhd, Globetronics Technology Bhd, Inari Ametron Bhd, Unisem (M) Bhd, UOA Development Bhd and Petronas Chemicals Group Bhd.

Stocks rallied and bonds retreated in Asia on Monday as a thaw in the Sino-U.S. trade dispute tempered risks to the global economy, leading investors to pare wagers on aggressive policy easing by the major central banks, according to Reuters.

The dollar gained on the safe-haven yen as Treasury yields jumped and futures reined in bets for a half-point rate cut from the U.S. Federal Reserve this month, it said.

Kenanga IB Research said the Asian markets ended last week lower as investors waited for a positive outcome on the Trump-Xi meeting at the G-20 summit.

Meanwhile, it said the FBM KLCI slipped 0.57 points (-0.03%) to close at 1,672.

“The index showed signs of cautiousness as it has persistently formed small candle bodies due to the rising uncertainty from the G-20 summit.

“However, the underlying trend remains bullish as the index has broken above the key SMAs recently.

“From here, resistances can be found at 1,690 (R1). A break above should see the index trend higher towards 1,730 (R2). Conversely, downside supports can be identified at 1,650 (S1) and 1,600 (S2),” it said.