KUALA LUMPUR (Nov 1): The FBM KLCI ticked up in early trade this morning, tracking gains at the regional markets, but asny advance is seen capped.
At 9.05am, the FBM KLCI added 1.57 points to 1,710.84.
The gainers included United Plantations Bhd, Petronas Gas Bhd, Perusahaan Sadur Timah Malaysia Bhd, KESM Industries Bdh, Petronas Chemicals Group Bhd, Heineken Malaysia Bhd, Hai-O Enterprise Bhd, Hartalega Holdings Bhd and Telekom Malaysia Bhd.
Asian stocks rose on Thursday as bruised investor sentiment got some relief from another robust Wall Street session thanks to upbeat corporate earnings, while the dollar hovered near a 16-month high on further signs of strength in the world's largest economy, according to Reuters.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.15 percent, adding to modest gains the previous day, though this came after a brutal October month, it said.
Hong Leong IB Research in a traders’ brief said that this rebound would be short-lived given the few upcoming major events such as mid-term US presidential election and the meeting between US President Trump and Chinese President Xi this month, which could provide heightened volatility and downside risk towards the stock markets.
“Tracking the performance on overnight Wall Street, buying interest may sustain on the local front, lifting the KLCI higher.
“However, upside could be capped as profit taking activities may emerge ahead of the “belt-tightening mode” Budget 2019.
“Hence, KLCI’s trading range likely to be capped between 1,690-1,730,” it said.