KLCI rises 0.49% as select blue chips lift amid cautious regional markets

KUALA LUMPUR (July 2): The FBM KLCI rose 0.49% today, lifted by gains including at key index-linked blue chips, against the backdrop of cautious regional markets.

At 10am, the FBM KLCI rose 8.31 points to 1,691.93.

Gainers led losers by 285 to 251, while 299 counters traded unchanged. Volume was 750.38 million shares valued at RM421.92 million.

Gainers included Nestle (M) Bhd, Petronas Dagangan Bhd, Hong Leong Financial Group Bhd, Hong Leong Bank Bhd, Tenaga Nasional Bhd, Telekom Malaysia Bhd and Aeon Credit Service (M) Bhd.

The actives included Compugates Holdings Bhd, KNM Group Bhd, Ekovest Bhd, Prestariang Bhd, Bumi Armada Bhd, Sapura Energy Bhd, Wegmans Holdings Bhd and Greatech Technology Bhd.

The decliners included Sarawak Oil Palms Bhd, Pintaras Jaya Bhd, Time Dotcom Bhd and Khind Holdings Bhd.

Asian shares were choppy on Tuesday as weak global manufacturing activity reinforced worries about slowing world growth, while the initial enthusiasm over a Sino-US trade truce gave way to uncertainty over whether the two nations can strike a durable deal, according to Reuters.

Further dragging on sentiment was the US government’s threat on Monday of tariffs on US$4 billion of additional European Union goods, in a long-running dispute over aircraft subsidies, it said.

Hong Leong IB Research said that on Wall Street, chipmakers are likely to trend positively following the trade truce and US President Donald Trump’s comment that US companies will be able to resume selling equipment to Huawei may provide some relief on the trade front, at least for the near term.

“However, the current trade progress [is] in a ‘no further tariffs escalation, but still no clear direction towards a comprehensive deal’ status, hence upside on the Wall Street [is] likely to be capped.

“Tracking the positive tone from the overnight Wall Street amid the positive trade developments, we think the buying interest could spill over towards technology sector at least over the near term.

“Meanwhile, traders would focus on O&G (oil and gas) stocks as oil prices stayed firmly above US$65 amid extension of production cuts for the next nine months by OPEC and other producers,” it said.

Source: TheEdgeMarkets