KLCI reverses loss as Genting, utilities lift

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KUALA LUMPUR (June 20): The FBM KLCI reversed its earlier loss at mid-morning today and hovered higher, lifted by gains including at Genting Bhd and index-linked utility stocks.

At 10am, the FBM KLCI gained 0.99 points to 1,667.53. The index had earlier slipped to a low of 1,660.83.

Gainers led losers by 242 to 191, while 281 counters traded unchanged. Volume was 491.2 million shares valued at RM335.46 million.

The gainers included Nestle (M) Bhd, Yinson Holdings Bhd, Genting Bhd, Tenaga Nasional Bhd, Telekom Malaysia Bhd, RHB Bank Bhd, MISC Bhd and Gamuda Bhd.

The actives included Borneo Oil Bhd, Elovest Bhd, Iskandar Waterfront City Bhd, Perdana Petroleum Bhd, Dayang Enterprise Holdings Bhd and Mestron Holdings Bhd.

The decliners included Fraser & Neave Holdings Bhd, PPB Group Bhd, Public Bank Bhd, Genting Plantations Bhd, Hong Leong Bank Bhd, Sime Darby Plantation Bhd and Amverton Bhd.

A gauge of global stock markets edged near this year's peak while benchmark US Treasury yields and the dollar dropped after the Federal Reserve (Fed) signalled possible interest rate cuts later this year, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2% while Japan's Nikkei gained 0.5%, it said.

Hong Leong IB Research said the Fed has kept its interest rate unchanged and the expectations of lower rates have lifted the market sentiment over the past few weeks.

It said the lower rates expectation is likely to boost the markets further at least over the near term.

"However, market participants may shift their attention to the upcoming trade developments between President Trump and President Xi in the upcoming G20 summit, should any negative surprises surface on the trade front, it may dampen the global stock market's sentiment. The Dow's resistance is set along 26,700-26,952.

"The FOMC (Federal Open Market Committee) meeting has concluded with the Fed maintaining the interest rate for now and we expect traders to follow up on news regarding the G20 summit as well as developments on the trade front between the US and China.

"Tracking the positive overnight Wall Street, we expect minor buying interest on KLCI. However, upside might be limited as Stochastic is suggesting that the upside could be capped along 1,680," it said.