KLCI pares gains, struggles to breach 1,800 level

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KUALA LUMPUR (Aug 8): The FBM KLCI pared some of its gains at mid-morning today, struggling to breach the 1,800-point level.

At 10am, the FBM KLCI gained 4.22 points to 1,795.31. The index had earlier risen to a high of 1,798.35.

Gainers led losers by 340 to 185, while 326 counters traded unchanged. Volume was 660.39 million shares valued at RM426.09 million.

The gainers included Far East Holdings Bhd, Heineken Malaysia Bhd, Hartalega Holdings Bhd, Malaysia Airports Holdings Bhd, Riverview Rubber Estates Bhd, Carlsberg Brewery Malaysia Bhd, Magni-Tech Industries Bhd, Hengyuan Refining Company Bhd, ViTrox Corp Bhd and Malaysian Pacific Industries Bhd.

The actives included Malaysian Resources Corp Bhd, Cuscapi Bhd, My E.G. Services Bhd, Sino Hua-An International Bhd, UCrest Bhd, Iris Corp Bhd and Edaran Bhd.

The losers included Kuala Lumpur Kepong Bhd, British American Tobacco (M) Bhd, Red Ideas Holdings Bhd, Shangri-La Hotels (M) Bhd, JMR Conglomeration Bhd, IHH Healthcare Bhd, Public Bank Bhd, Chin Well Holdings Bhd and Hai-O Enterprise Bhd.

Asian shares rose on Wednesday on the back of firmer Wall Street earnings while expectations for increased Chinese stimulus helped take the edge off wider concerns about the worsening Sino-US trade dispute, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.22% while Japan's Nikkei ticked up 0.05%, it said.

Hong Leong IB Research in a traders' brief said although market sentiment remains sturdy as investors focused on solid quarterly earnings, the recent upward move may attract profit-taking activities, should there be any negative news flows from the trade developments.

"Meanwhile, the proposed tariffs of 25% on the US$200 billion worth of Chinese goods will be on a scheduled hearing during Aug 20-23.

"As investors set aside the trade developments and noticing stronger inflows from foreigners, we may anticipate extended rebound on the broader market.

"However, cautious sentiments will still prevail ahead amid the uncertain August reporting month.

"Hence, we opine that the KLCI's upside will be limited near 1,800," it said.