KUALA LUMPUR (Jan 9): The FBM KLCI pared some of its gains and remained shy of the 1,600-point mark at mid-morning today, despite the rally at most regional markets.

At 10.05am, the FBM KLCI was up 6.53 points at 1,595.63. The index had earlier risen to a high of 1,599.01.

Gainers led losers by 462 to 124, while 246 counters traded unchanged. Volume was 736.08 million shares valued at RM328.86 million.

The gainers included Malaysian Pacific Industries Bhd, Hong Leong Financial Group Bhd, Heineken Malaysia Bhd, Aeon Credit Service (M) Bhd, Kuala Lumpur Kepong Bhd, Allianz Malaysia Bhd, MBM Resources Bhd and Petronas Dagangan Bhd.

The actives included Vortex Consolidated Bhd, Dataprep Holdings Bhd, NetX Holdings Bhd, Alam Maritim Resources Bhd, Poh Kong Holdings Bhd and AT Systematization Bhd.

The decliners included Nestle (M) Bhd, Petronas Chemicals Group Bhd, Tomei Consolidated Bhd, PPB Group Bhd and Poh Kong.

Reuters said Asian stocks rebounded on Thursday and oil beat a retreat, as the United States and Iran backed away from the brink of further conflict in the Middle East and investors reversed their safety plays.

US President Donald Trump responded overnight to an Iranian attack on US forces with sanctions, not violence. Iran offered no immediate signal it would retaliate further to a Jan 3 US strike that killed one of its senior military commanders, it said.

Hong Leong IB Research said in the near term, Wall Street is likely to remain volatile with key focus on the development in Middle East, impending Phase 1 trade deal signing as well as the start of January reporting season (for 4Q19 results) next week.

"Barring any escalation in US-Iran geopolitical tensions into a full-fledged battle, the Dow's trading range will be located around 28,000-29,500 as geopolitical risks are here to stay, and will cause episodic volatility.

"In the short term, Bursa Malaysia is likely to remain cautious amid rising geopolitical risks in Middle East, the repercussions of protracted US-China trade war (despite the impending Phase 1 trade deal signing next week), coupled with the weak earnings delivery by Bursa Malaysia companies and nagging internal (policy, politics) uncertainties.

"Ahead of the upcoming CNY holidays and Feb reporting season, we expect KLCI to [be] trap[ped] in [a] range bound pattern with key resistances at 1,600-1,620 whilst supports fall on 1,570-1,580 levels, barring further escalation in US-Iran geopolitical conflicts into a full-fledged war," it said.