Select blue chips lift KLCI in early trade

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KUALA LUMPUR (June 1): The FBM KLCI  edged up in early trade today, lifted by select blue chips.

At 9.02am, the FBM KLCI added 3.64 points to 1,751.16.

The top gainers included Petronas Dagangan Bhd, Petronas Gas Bhd, MNRB Holdings Bhd, Kuala Lumpur Kepong Bhd, Public Bank Bhd, Lafarge Malaysia Bhd, United Plantations Bhd and Top Glove Corporation Bhd.

Asian shares slipped early on Monday as persistent fears about Greece's precarious financial situation and downbeat U.S. data sapped confidence, acciording to Reuters.

Greece and its European creditors agreed on the need to reach a cash-for-reforms deal quickly as Athens missed a self-imposed Sunday deadline for reaching an agreement to unlock aid, sources close to the talks said, it said.

Hong Leong IB Research in a market preview today said the FBM   KLCI had already slumped 120 points or 6.4% from year-to-date high of 1867.5 on May 13 to 1747.5 last Friday.

The research house said despite the oversold position, current subdued trading environment should persist as investors refrain from trading commitments amid uncertainties over the near-term market direction, given the lack of fresh catalysts and nagging domestic issues.

“For a resumption of uptrend, the FBM KLCI must swiftly recapture the 1792 (downtrend line from all time high of 1896).

“On the flipside, failure to hold near 1746 (61.8% FR) will trigger a freefall towards 1715-1733 gap recorded on Dec 15,” it said.