KLCI rises 0.53%, climbs above 1,800-level

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KUALA LUMPUR (Sept 19): The FBM KLCI rose 0.53% at mid-morning today and climbed above the 1,800-point level, tracking gains at the regional markets.

At 10.05am, the FBM KLCI rose 9.59 points to 1,802.53.

Gainers led losers by 320 to 174, while 288 counters traded unchanged. Volume was 562.80 million shares valued at RM349.36 million.

The gainers included Hong Leong Bank Bhd, Hong Leong Financial Group Bhd, UMW Holdings Bhd, Petronas Gas Bhd, MI Equipment Holdings Bhd, Top Glove Corp Bhd, Heineken Malaysia Bhd, Petronas Dagangan Bhd and Public Bank Bhd.

The actives included Sapura Energy Bhd, Vizione Holdings Bhd, Nova MSC Bhd, Malaysian Resources Corp Bhd, My EG Services Bhd, AirAsia X Bhd and Sumatec Resources Bhd.

The decliners included Ajinomoto (M) Bhd, Nestle (M) Bhd, Hartalega Holdings Bhd, Lafarge Malaysia Bhd and Hwa Tai Industres Bhd.

Asian stocks rose and U.S. Treasury yields hovered near four-month highs on Wednesday, as investors looked past the latest escalation in the U.S.-China trade conflict, seen by some market participants as less severe than expected, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.15 percent, it said.

Hong Leong IB Research in a traders’ brief said as US-China remains stern and bold on their statements on the trade issues, the prospects for significant progress towards de-escalation in the short term are low.

“Unless it can strike a favourable deal with China, the US is likely to prolong this matter until its mid-term elections in November is over as any attempt to rush through a deal that appears unfavourable for the US could backfire on the Republican Party.

“Hence, we anticipate that the Dow to engage in rangebound mode with increased day-to-day volatility, supported by strong growth in corporate earnings and improving economic data.

“Although the overnight strong rebound in Wall St could spur some excitement on our market today, we reiterate that sentiment to remain cautious due the lack of domestic rerating catalysts amid the prospects of slowdown in Malaysia’s economy and corporate earnings coupled with expectations of further “belt-tightening budget 2019” to be tabled on 2 Nov.

“Unless KLCI can reclaim above congested resistances near 1797-1810 strongly, the index is likely to engage in extended consolidation mode with supports at 1763-1770,” it said.