KLCI starts higher as investors eye US tech results, Brexit uncertainty

KUALA LUMPUR (Oct 25): The FBM KLCI opened higher today before paring gains after US equities’ overnight rise and as investors evaluated Brexit updates.

At Bursa Malaysia today, the KLCI opened up 1.8 points at 1,572.91 at 9am. At 9:06am, the KLCI was up 0.99 point at 1,572.10.

Overnight in the US, Reuters reported that the S&P 500 and the Nasdaq rose on Thursday following strong quarterly reports from several technology companies, including Microsoft Corp, but dour results from 3M Co stymied the Dow Jones Industrial Average. It was reported that the Dow Jones Industrial Average fell 28.42 points or 0.11% to 26,805.53, the S&P 500 gained 5.77 points or 0.19% to 3,010.29 and the Nasdaq Composite added 66.00 points or 0.81% to 8,185.80.

Across Asia today, it was reported that Asian shares inched up on Friday, tracking small gains in world markets as positive earnings offset economic growth concerns, while sterling weakened as the prospect of a UK election added fresh uncertainty to Brexit dramas. British Prime Minister Boris Johnson conceded on Thursday for the first time that he would not meet his “do or die” deadline to leave the European Union next week, according to Reuters.

In Malaysia today, Hong Leong Investment Bank Bhd wrote in a note that local shares may take cue from US technology companies’ financial results.

“On the local front, we expect some buying interest to emerge on technology related stocks such as KRONO (Kronologi Asia Bhd) following the decent growth in web/ cloud services in Microsoft and Amazon,” Hong Leong said.

Investors here are looking ahead to an extended weekend in conjunction with Deepavali, which falls on Sunday (Oct 27).

Bursa Malaysia said in a statement the bourse regulator and operator will be closed on Monday (Oct 28) in lieu of Deepavali celebrations which fall on Sunday. “Bursa Malaysia and its subsidiaries will resume operations on Tuesday, 29 October 2019,” the group said.

Source: TheEdgeMarkets