KUALA LUMPUR (Jan 3): The FBM KLCI pared some of its gains but remained firmly above the 1,600-point level at mid-morning, tracking regional gains.

At 10am, the FBM KLCI was up 7.32 points to 1,609.82. The index had earlier risen to a high of 1,612.62.

Gainers led losers by 408 to 216, while 318 counters traded unchanged. Volume was 1.03 billion shares valued at RM438.78 million.

The top gainers included Nestle (M) Bhd, Hong Leong Financial Group Bhd, Kuala Lumpur Kepong Bhd, Allianz Malaysia Bhd, Fraser & Neave Holdings Bhd, Genting Plantations Bhd, Petronas Gas Bhd, PPB Group Bhd and Carlsberg Brewery Malaysia Bhd.

The actives included Melewar Industrial Group Bhd, Avillion Bhd, Sapura Energy Bhd, Dynaciate Group Bhd, Dataprep Holdings Bhd, KNM Group Bhd, Ekovest Bhd, Bina Puri Holdings Bhd and MCT Bhd.

The decliners included Heineken Malaysia Bhd, Chin Teck Plantations Bhd, Rapid Synergy Bhd, MCE Holdings Bhd, G3 Global Bhd, Guan Chong Bhd, Public Packages Holdings Bhd and Nationwide Express Holdings Bhd.

Bloomberg said stocks in Asia were primed for gains on Friday after a strong start to the year lifted US equities to fresh all-time highs. Treasuries and the US dollar rose.

Futures indicated gains for equities in Hong Kong and Australia. The S&P 500 earlier rose 0.8% with megacaps Apple, Alphabet and Nike all notching new record highs. Gains had begun in Asia Thursday when traders returned from holidays to news of policy support from China's central bank to lift its economy. The pound slid amid concern the UK won't be able to negotiate a free-trade agreement with the European Union by the deadline at the end of this year, it said.

Kenanga IB Research said the first day of 2020 saw Asian markets closed higher on China's optimistic official manufacturing PMI.

Meanwhile, it said investors continue to react positively in anticipation of the Phase 1 trade deal.

It said back home, the FBM KLCI increased by 13.74 points (+0.86%) to close at 1,602.50.

"Chart-wise, the index is still holding itself to trade above all of its key SMAs.

"Coupled with a bullish signal from MACD, there may be more upside potential.

"From here, we expect the index to test resistance levels at 1,630 (R1) and 1,650 (R2). Meanwhile, support levels to watch out for are 1,550 (S1) and 1,540 (S2)," it said.