KLCI pares gains, stays up 0.60% tracking regional bounce

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KUALA LUMPUR (May 31): The FBM KLCI pared some of its gains at mid-morning today and was up 0.60%., lifted by gains at index-linked blue chips in line with the rebound at regional markets.

At 10am, the FBM KLCI rose 10.42 points to 1,729.70. The index had earlier risen to a high of 1,754.44.

Gainers led losers by 365 to 359, while 269 counters traded unchanged. Volume was 666.39 million shares valued at RM495.29 million.

The gainers included Nestle (M) Bhd, Fraser & Neave Holdings Bdh, Hong Leong Bank Bhd, Petronas Gas Bhd, Hengyuan Refining Company Bhd, Tenaga Nasional Bhd, Hong Leong Financial Group Bhd and United Plantations Bhd.

The actives included Sapura Energy Bhd, My E.G. Services Bhd, NWP Holdings Bdh, Sino Hua-An International Bhd, Hibiscus Petroleum Bhd, Borneo Oil Bhd and Malaysian Resources Corp Bhd.

The losers included Kossan Rubber Industries Bhd, Heineken Malaysia Bhd, British American Tobacco (M) Bhd, IJM Corp Bhd, Ayer Holdings Bhd, Ta Ann Holdings and Woodlandor Holdings Bhd.

Asian stocks rebounded from a two-month trough on Thursday, while the euro enjoyed a respite after sinking to its lowest in 10 months as political turmoil in Italy that had roiled global financial markets showed signs of easing, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan tacked on 0.3 percent having slumped to its weakest since the start of April on Wednesday, it said.

Hong Leong IB Research in a traders’ brief said on the Dow outlook, ongoing concerns on trade war and the focus on US-North Korea summit coupled with unresolved political turmoil in Italy (although risks had eased) could spark interim volatility towards the stock markets.

“We expect Dow to trend range bound within 24,000-25,300 in the short term, prior to the 12-13 June FOMC meeting.

“As the lift from robust global demand is less assured in 2018 and downside risks are heightened amid elevated trade tensions between the US-China, rising geopolitical risks, soaring bond yields, coupled with the still unresolved Italy political crisis, KLCI near term outlook would remain volatile.

“Sentiment will be further dampened in view of the renewed concerns of 1MDB scandal and piling national debts as well as awaiting more policy pipeline from the new PH regime, following a landmark shift for Malaysia from the six-decade rule of the BN,” it said.