KLCI remains firmly above 1,800-level

-A +A

KUALA LUMPUR (Sept 21): The FBM KLCI remained firmly above the 1,800-point level at mid-morning and was up 0.37%, tracking the gains at regional markets.

At 10am, the FBM KLCI was up 6.70 points to 1,810.40.

Gainers led losers by 299 to 189, while 289 counters traded unchanged. Volume was 424.35 million shares valued at RM302.52 million.

The gainers included Hong Leong Industries Bhd, British American Tobacco (M) Bhd, Aeon Credit Service (M) Bhd, Petronas Dagnagn Bhd, Kuala Lumpur Kepong Bhd, Carlsberg Brewery Malaysia Bhd, Chemical Company of Malaysia Bhd, Nestle (M) Bhd, Hong Leong Financial Group Bhd and QL Resources Bhd.

The actives included My EG Services Bhd, Lion Industries Bhd, Nova MSC Bhd, XOX Bhd, Sapura Energy Bhd, Cuscapi Bhd and Velesto Energy Bhd.

The decliners included Padini Holdings Bhd, Kawan Food Bhd, Tien Wah Press Holdings Bhd and Tex Cycle Technology Bhd.

Asian stocks extended gains on Friday after Wall Street's S&P 500 set a new all-time high, while the dollar slipped as investors viewed Beijing's and Washington's fresh exchange of import tariffs as less harmful than initially feared, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent in early trade, extending the recovery from its 14-month low hit on Sept. 12 to 3.6 percent, it said.

Hong Leong IB Research in a traders’ brief said taking cues from recent bold statements from the US-China leaders, the prospects for significant progress towards de-escalation in the short term are low.

“Nevertheless, investors remain sanguine that the heightened anxiety over an escalating US-China trade conflict would compromise to eventually quell fears of a growth-hindering trade war in the long term, thus providing support to the ongoing rally.

“Key support and resistance  are 26800 and 26000 levels, respectively.

“The fresh record close in Dow overnight and expectations of potential end 3Q window dressing should bode well for KLCI to grind higher towards 1810/1818/1827 territory in the short term.

“However, the relief rally from post GE14 low at 1,657 (June 28) is likely to be capped near 1,840, due to the lack of domestic rerating catalysts, given the prospects of protracted US-China trade war, EM contagion risks, tightening financial conditions and expectations of further “belt-tightening budget 2019” to be tabled on Nov 2. Supports are situated near 1770-1776 zones,” it said.