KLCI rises 0.58% in post-Budget rally, progress in US-China trade talks

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KUALA LUMPUR (Oct 14): The FBM KLCI rose 0.58% in early trade this morning in post-Budget rally as well on progress of US-China trade talks.

At 9.05am, the FBM KLCI rose 9.14 points to 1,565.98.

The early gainers included Malaysian Pacific Industries Bhd, Heineken Malaysia Bhd, Public Bank Bhd, British American Tobacco (M) Bhd, KESM Industries Bhd, Teck Guan Perdana Bhd, Lingkaran Trans Kota Holdings Bhd, Genting Bhd, Pentamaster Corp Bhd and Hong Leong Financial Group Bhd.

Asian share markets pushed higher on Monday as signs of progress in the Sino-U.S. trade standoff whetted risk appetites, while pressuring safe-haven bonds and the yen, according to Reuters.

Liquidity was lacking, however, with Japan off and a partial market holiday in the United States for Columbus Day. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.5%, it said.

CGS-CIMB Retail Research said the FBMKLCI remained tepid last week ahead of the much-awaited 2020 Budget.

It said today, the local market may gain traction from the optimism over the US-China trade talks.

“From a technical standpoint, the KLCI could potentially stage a follow-through rebound this week given the positive divergence formation on its indicators.

“Nevertheless, any bounce for the benchmark is likely to find resistance at the falling 30-day and 50-day EMAs. Resistance: 1,572 & 1,580. Support: 1,540 & 1,500,” it said.