KUALA LUMPUR (Sept 19): The FBM KLCI ticked up in early trade this morning, tracking regional markets and lifted by select index-linked blue chips.

At 9.05am, the FBM KLCI rose 4.90 points to 1,797.84.

The gainers included Hong Leong Financial Group Bhd, Carlsberg Brewery Malaysia Bhd, Petronas Gas Bhd, MI Equipment Holdings Bhd, UMW Holdings Bhd, British American Tobacco (M) Bhd, Press Metal Aluminium Holdings Bhd and Time Dotcom 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.