KUALA LUMPUR (Aug 29): The FBM KLCI got off to a cautious start Thursday as the much anticipated trade talks between the US and China continue to keep investors on tenterhooks.

At 9.05am, the FBM KLCI gained 2.13 points to 1,591.95.

The early gainers included Nestle (M) Bhd, Hong Leong Financial Group Bhd, Kuala Lumpur Kepong Bhd, Amway Holdings (M) Bhd, Hong Leong Bank Bhd, Teck Guan Perdana Bhd, BIMB Holdins Bhd and Time Dotcom Bhd.

Asian stocks look set for a muted open Thursday as investors awaited new developments in the U.S. and China trade negotiations. The dollar strengthened to a nine-month high, according to Bloomberg.

Futures nudged higher in Tokyo and Hong Kong, and dipped in Sydney. The S&P 500 Index climbed on below average volume as a rally in oil pushed energy shares higher. Ten-year Treasury yields held steady after hitting a three-year low. Currencies were little changed in Asia after Treasury Secretary Steven Mnuchin said the U.S. doesn’t intend to intervene on the dollar for now. The pound weakened and gilts climbed after U.K. Prime Minister Boris Johnson moved to suspend parliament, increasing the risk of a no-deal Brexit, it said.

CGS-CIMB Retail Research said Bursa Malaysia Finance Index (KLFIN) appears to be undergoing a large reversal process via not one but two head-and-shoulders (H&S) patterns.

It said the index is currently testing 15,350 and a firm close below 15,350 (on Friday) may warn that the finance sector may undergo a deeper pullback.

“Meanwhile, some selected export-oriented counters, such as Serba Dinamik Holdings Bhd, could potentially gain traction from the weakening Ringgit (MYR) against the greenback.

“MYR decisively breached the 4.20 mark against US Dollar. KLCI Resistance: 1,620 & 1,640. KLCI Support: 1,581 & 1,572,” it said.