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KLCI reverses loss, gains 0.26% as Tenaga lifts

KUALA LUMPUR (May 29): The FBM KLCI reversed its earlier loss and rose 0.26% at mid-morning today, lifted by gains led by Tenaga Nasional Bhd.

At 10.05am, the FBM KLCI rose 4.14 points to 1,618.71. The index had earlier slipped to a low of 1,611.48.

Losers led gainers by 257 to 211, while 256 counters traded unchanged. Volume was 367.17 million shares valued at RM222.49 million.

The top gainers included Tenaga Nasional Bhd, Tasek Corp Bhd, Panasonic Manufacturing Malaysia Bhd, SAM Engineering & Equipment Bhd, Petronas Gas Bhd, Bursa Malaysia Bhd, Hume Industries Bhd and Aeon Credit Service (M) Bhd.

The actives included Vortex Consolidated Bhd, Impiana Hotels Bhd, Bumi Armada Bhd, PUC Bhd, Seacera Group Bhd and Ekovest Bhd.

The decliners included British American Tobacco (M) Bhd, Nestle (M) Bhd, Malaysian Paficic Industries Bhd, Latitude Tree Holdings Bhd, Padini Holdings Bhd, Yinson Holdings Bhd, Petronas Chemicals Group Bhd, Petron Malaysia Refining & Marketing Bhd, QL Rsources Bhd and Serba Dinamik Holdings Bhd.

Asian shares stumbled on Wednesday and global bonds rallied as investors fretted over the outlook for world growth with trade tensions between Washington and Beijing showing no signs of abating, according to Reuters.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.4% after three straight days of gains. South Korea’s KOSPI and Australian shares were 0.9% lower each, it said.

Hong Leong IB Research said as the trade tensions escalated with Trump’s comments on trade front, we believe the trading tone could stay negative over the near term, thus capping the upward momentum on Wall Street.

“Also, traders will be watching closely any trade developments before the G20 event in end-June as investors are hoping for some clarity on trade progress and anticipating a trade deal to be struck soon. The Dow’s resistance will be set around 25,500-26,000.

“With the negative performances on overnight Wall Street, selling pressure may emerge on the local bourse, contributing to another round of trade outflows amongst foreigners, which may limit the potential upside on the FBM KLCI (resistance is located around 1,618-1,630).

“Also, we believe technology shares may face with another round of profit taking activities after the recent technical rebound,” it said.

Source: TheEdgeMarkets