KLCI, Asian markets climb as US-Mexico trade war averted

KUALA LUMPUR: The FBM KLCI started the week with a lift on Wall Street’s Friday rally coupled with news over the weekend that Washington had dropped its plan to impose tariffs on Mexican imports.

At 9.05am, the local benchmark index was up 3.69 points to 1,653.02. There were 191 gainers versus 40 decliners and 129 counters unchanged. Trading volume was 85.1 million shares valued at RM34.78mil.

In its technical outlook, Kenanga research maintained that the primary downtrend on the FBM KLCI was intact as the share remained below the 100-day simple moving average.

“Should the index convincingly break above its 100-day SMA, we opine that the outlook could turn bullish.

“From here, resistances can be found at 1,670 (R1) and 1,705 (R2). Conversely, supports are identified at 1,610 (S1) and 1,585 (S2),” it said.

The most active counters in the opening minutes of trade were Hua An rising 0.5 sen to 18 sen, AAX gaining 0.5 sen to 24.5 sen and Ekovest gaining 1.5 sen to 80.5 sen.

Heavyweights on the move included Nestle climbing 50 sen to RM149, Public Bank adding eight sen to RM23.50 and Genting rising six sen to RM6.47.

On the falling end of the index, Press Metal lost two sen to RM4.44.

Asian markets are in the green on Monday as a trade conflict between the US and Mexico was averted with the signing of an immigration enforcement plan.

Japan’s Nikkei was up 1.1% while South Korea’s Kospi gained 0.5%.

Meanwhile oil prices rose on news that Opec and Russia were continuing supply cuts while the global demand outlook improved over the US-Mexico agreement.

US crude rose 44 cents to US$54.43 a barrel and Brent crude gained 42 cents to US$63.71 a barrel.

Source: TheStar