Select blue chips lift KLCI in early trade

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KUALA LUMPUR (Nov 24): The FBM KLCI edged up in early trade on Monday, lifted by gains at select blue chips, in line with the uptrend at most global markets.

At 9am, the FBM KLCI rose 2.32 points to 1,811.45.

The top gainers included United Plantations Bhd, Genting Plantation Bhd, British American Tobacco (M) Bhd, Lafarge Malaysia Bhd, Malaysia Airports Holdings Bhd, Hartalega Holdings Bhd, Mah Sing Group Bhd, CIMB Group Holdings Bhd, Axiata Group Bhd and Coastal Contracts Bhd.

Regionally, Asian share markets followed the dollar higher on Monday as the prospect of further policy stimulus in China and Europe whetted risk appetites while sending the euro skidding, according to Reuters.

The single currency was matching 28-month lows in early trade having shed 1.2 percent on Friday when European Central Bank President Mario Draghi surprised by declaring his commitment to fighting deflation, it said.

JF Apex Securities Research in a market preview Monday said U.S. stocks ended the week at highs as markets rallied on overseas central banks' stimulus efforts and an encouraging domestic outlook.

It said that similarly, European shares closed sharply higher on Friday as investors reacted to a surprise policy move by the Chinese central bank and dovish words by Mario Draghi, the president of the European Central Bank (ECB).

“On the local market, the FBM KLCI slumped 13.16 points to 1809.13 points.

“Following the optimism in global markets, the KLCI could rebound from its decline last week but it would need a greater catalyst to test its resistance of 1,830 points,” it said.