KLCI bounces higher as mood over trade war shifts once again

KUALA LUMPUR: The FBM KLCI bounced slightly higher on Thursday following the sharp sell-off seen in recent sessions.

Tracking US markets, which rose overnight on positive comments made by US President Donald Trump over the trade war, local equities pared losses from earlier in the week.

However sentiment remained muted owing to the constant shifts in mood over the trade war, leading to increasing caution over the prospects for a trade deal.

At 9.17am, the local benchmark index was up 1.67 points to 1,562.6. Trading volume was 263.08 million shares valued at RM106.48mil. There were 235 gainers versus 99 decliners and 229 counters unchanged.

According to Kenanga research, the prospect of a rebound remained present as the Stochastic indicator remained in the oversold region.

“From here on, overhead resistance can be seen at 1,630 (R1) and 1,650 (R2). Conversely, key support levels can be found at 1,550 (R1) and 1,540 (R2),” it said.

The most heavily traded stocks in the early morning were SAPURA ENERGY up 0.5 sen to 27.5 sen, Mudajaya up 2.5 sen to 42 sen and Alam Maritim up 0.5 sen to 13 sen.

Top gainers included Heineken gaining 28 sen to RM26.48, Chintek rising 20 sen to RM6.50 and IGBB jumping 13 sen to RM4.05.

Public Bank was among the heavyweight counters on the advance, picking up 10 sen to RM19.40.

Meanwhile Petronas Gas also pushed 10 sen higher to RM19.40.

On the opposing end, Hong Leong Bank slipped eight sen to RM16.92 while IHH dropped six sen to RM5.23.

Source: TheStar