KLCI rises with modest gains, stays below 1,600-level

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KUALA LUMPUR (Aug 20): The FBM KLCI posted modest gains, tracking regional markets, lifted by select index-linked chips including Tenaga Nasional Bhd.

At 9.05am, the FBM KLCI  rose 1.79 points to 1,598.24.

The early gainers included Petronas Gas Bhd, Malaysian Pacific Industries Bhd, Guan Chong Bhd, Bintulu Port Holdings Bhd, Tenaga Nasional, Perusahaan Sadur Timah Malaysia Bhd, YHN Property Bhd, MCE Holdings Bhd and MBM Resources Bhd.

Asian stocks were set for modest gains on Tuesday after some signs of progress on trade negotiations and speculation of government stimulus to shore up economic growth. The dollar rose to this year’s high, according to Bloomberg.

Futures were higher in Tokyo and Sydney, and little changed in Hong Kong. The S&P 500 Index gained for a third day, led by chipmakers, as U.S. Commerce Secretary Wilbur Ross said the nation will delay restrictions imposed on some business operations of China’s Huawei Technologies Co. The yen maintained declines as demand for havens ebbed, it said.

CGS-CIMB Retail Research said despite the positive performance across the Asian markets, the local barometer lost 2.77 points on Monday.

“While the index may stage a relief rebound this week, we will not rule out cautious sentiments prevailing amid the uncertain August reporting month.

“If a rebound takes place, the Aug 5’s gap of 1,621-1,626 is likely to act as resistance. Resistance: 1,620 & 1,640. Support: 1,589 & 1,572,” it said.