KUALA LUMPUR (Sept 14): The FBM KLCI edged up in early trade this morning, lifted by select blue chips, tracking gains at most regional markets.

At 9.05am, the FBM KLCI rose 1.48 points to 1,794.08.

Asian stocks extended a rally after their recent battering drove valuations to a two-year low, following a technology-supported advance in U.S. equities. The dollar held declines after U.S. inflation unexpectedly cooled in August, according to Bloomberg.

With the dollar on the back foot, prospects for U.S.-China trade talks on the horizon and action by Turkey to support its currency, it all made for a positive tone for markets Friday. Shares in South Korea and Japan led gains, while futures signaled a strong start in Hong Kong and China. Emerging-market currencies climbed, with the lira surging after Turkey’s larger-than-expected interest-rate hike. Oil heads for a weekly gain as traders keep watch on Hurricane Florence’s path to the U.S. east coast, it said.

The early gainers included CIMB Group Holdings Bhd, Serba Dinamik Holdings Bhd, QL Resources Bhd, RHB Bank Bhd, Only World Group Holdings Bhd, Globetronics Technology Bhd, Pos Malaysia Bhd, Sime Darby Plantations Bhd and Genting Bhd.

Hong Leong IB Research in a traders’ brief said despite positive optimism from a new round of US-China talks, trading sentiment at Wall Street could remain edgy ahead of the upcoming FOMC meeting on Sept 26 Sep and the ongoing trade discussions and worries between the US and its trading partners.

“Hence, Dow is likely to trade rangebound within 25700-26300 over the near term.

“In wake of another commendable performance from Wall St overnight amid optimism of the US-China new talks and a resumption in foreign buying yesterday (net buy RM175 million shares) after disposing RM1.03 billion in the last five sessions, KLCI could climb further towards 1795-1800 levels today.

“However, any rebound will be capped due to an extended holidays ahead (Bursa will be closed on 17 Sep on Malaysia Day), as investors will continue to adopt a ‘risk-off’ mode amid external headwinds. Key supports are situated at 1762-1771 zones,” it said.