KLCI gets lift from Public Bank and Genting

KUALA LUMPUR (Feb 18): The FBM KLCI ticked up in early trade this morning, tracking gains at regional markets, lifted by key index-linked stocks including Public Bank Bhd and Genting Bhd.

At 9.05am, the FBM KLCI rose 5.48 points to 1,694.31.

The early gainers included Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Hong Leong Bank Bhd, Malaysian Pacific Industries Bhd, QL Resources Bhd, MISC Bhd, Aeon Credit Service (M) Bhd, Public Bank, APM Automotive Holdings Bhd and Genting.

Asian stocks rose on Monday following a strong U.S. session amid optimistic signs on the economy and trade discussions, according to Bloomberg.

Shares in Japan led the way higher, while equities in Australia and South Korea posted more modest advances. News that the U.S. and China had reached consensus in principle on the main topics in their trade negotiations helped boost risk appetite ahead of talks that resume in Washington this week. The S&P 500 Index ended last week at a 10-week high, with exchanges closed Monday for Presidents’ Day. The dollar steadied after two days of losses and oil pushed higher, it said.

Kenanga IB Research said Asian markets ended mostly lower last Friday following a weak Wall Street session as investors stayed on the side-lines while waiting for the conclusion of the US-China trade talks.

It said that similarly, the FBMKLCI dipped slightly by 0.23 pts or 0.01% to close at 1,688.83, bringing week-on-week gain to 0.14%.

“Overall, we maintain our neutral outlook as the index remains above the 20 and 50-day SMAs but other momentum indicators remain lacklustre.

“A positive outcome from the trade talks could see the index trending higher to its resistances at 1,730 (R1) and 1,800 (R2).

“Alternatively, should the index break below both the 20 and 50-day SMAs, support levels can be identified at 1,650 (S1) and 1,600 (S2),” it said.

Source: TheEdgeMarkets