KLCI rises 0.31%, in line with regional gains

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KUALA LUMPUR (June 10): The FBM KLCI rose 0.31% at mid-morning today, tracking the gains at regional markets, lifted by select index-linked blue chips.

At 10am, the FBM KLCI rose 5.2 points to 1,654.53.

Gainers led losers by 386 to 161, while 251 counters traded unchanged. Volume was 558.21 million shares valued at RM254.89 million.

The gainers included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Aeon Credit Service (M) Bhd, Petronas Dagangan Bhd, Public Bank Bhd and Panasonic Manufacturing Malaysia Bhd.

The actives included Bumi Armada Bhd, Ekovest Bhd, Lambo Group Bhd, Sino Hua-An International Bhd, My EG Services Bhd, Sapura Energy Bhd and Barakah Offshore Petroleum Bhd.

The losers included Malaysia-listed Hang Seng Index-linked put warrants, United Plantations Bhd, Sungei Bagan Rubber Company (Malaya) Bhd and Atlan Holdings Bhd.

US stock futures and Asian shares rose on Monday after the United States dropped its threat to impose tariffs on Mexico in a deal to combat illegal migration from Central America, while weak US jobs data raised hopes for US interest rate cuts, according to Reuters.

The Mexican peso jumped 1.75% in early Monday trade to 19.2579 on the US dollar on news of the removal of the tariff threat, it said.

Hong Leong IB (HLIB) Research said in the US, Wall Street has further upward momentum, premised on the fuelling hopes of US Federal Reserve rate cuts and positive development in the US-Mexico trade deal coupled with constructive discussion between US Treasury Secretary Steven Mnuchin and People's Bank of China's Yi Gang in Japan over the weekend.

"Meanwhile, market participants will be monitoring closely on the interest rate development in the upcoming FOMC (Federal Open Market Committee) meeting that will be held during June 18-19 and G20 summit for trade-related issues between US and its trading partners.

"Strong external leads from a strong rally on Wall Street last week amid progresses in US-China and US-Mexico trade disputes and hopes of US interest rate cuts should augur well for further KLCI rebound this week.

"In addition, positive foreign trade inflows recently (+RM786 billion in the last five consecutive sessions) and the recent technical rebound in ringgit bode well for HLIB top picks Malayan Banking Bhd, Tenaga Nasional Bhd, Sunway Bhd, Time Dotcom Bhd, DRB-Hicom Bhd and Chemical Company of Malaysia Bhd, and crude oil prices rebound could further lift sentiment, offsetting the overbought slow stochastic readings and the recently concluded weak 1Q19 reporting season," it said.