KLCI pares gains as Trump threatens more tariffs on China

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KUALA LUMPUR (Oct 15): The FBM KLCI pared some of its gains at midday break, as regional markets remained jittery with U.S.President Donald Trump threatening to impose another round of tariffs on China.

At 12.30pm, the FBM KLCI was up 1.37 points to 1,732.11. The index had earlier risen to a high of 1,739.32.

Losers edged gainers by 372 to 363, while 1,147 counters traded unchanged. Volume was 1.10 billion shares, valued at RM914.09 million.

Gainers included Top Glove Corp Bhd, ViTrox Corp Bhd, Petronas Dagangan Bhd, Malaysia Airports Holdings Bhd, Fraser & Neave Holdings Bhd, Hartalega Holdings Bhd, Petronas Chemicals Group Bhd and Latitude Tree Holdings Bhd.

Actives included Sapura Energy Bhd, Hibiscus Petroleum Bhd, Gamuda Bhd, AirAsia X Bhd, My EG Services Bhd and Velesto Energy Bhd.

Decliners included Petronas Gas Bhd, Heineken Malaysia Bhd, Hong Leong Financial Group Bhd, KESM Industries Bhd, Petron Malaysia Refining & Marketing Bhd and UMW Holdings Bhd.

Asian shares slipped on Monday, as worries over Sino-U.S. trade disputes, a possible slowdown in the Chinese economy and higher U.S. borrowing costs tempered optimism, despite a rebound in global equities late last week, according to Reuters.

Not helping the mood, oil prices jumped and Saudi Arabian shares tumbled on rising diplomatic tensions between Riyadh and the West, after the monarchy warned against threats to punish it over disappearance of a journalist critical of its policies, Reuters said.

Kenanga IB Research said last Friday (Oct 12) that Asian markets stabilised, as investors’ panic of rising Treasury yields subsided.

Back home, the FBM KLCI gained 22.25 points (+1.30%) to close at 1,730.74, it said, bringing its WoW losses to 46.41 points (-2.61%).

Technically, the outlook appears somewhat bearish, following the emergence of an earlier “head-and-shoulders” reversal chart pattern, the research house said.

“However, on the shorter-term, we do not discount the possibility of a continued relief rebound, following last week’s “hammer” and long bullish candlesticks.

“Key levels of resistance to look at are 1,735 (R1) and 1,760 (R2). Conversely, immediate support levels can be identified at 1,700 (S1) and 1,660 (S2),” Kenanga IB Research said.