KLCI sees slight gains on ECB stimulus, easing trade tensions

KUALA LUMPUR: The FBM KLCI moved higher in early Friday trade, tracking Wall Street overnight as the European Central Bank unveiled its new stimulus measures, even as trade tensions continued to ease.

At 9.03am, the local index was up 2.57 points to 1,603.57. Trading volume was 98.88 million shares valued at RM28.79mil. There were 104 gainers versus 49 decliners and 133 counters unchanged.

The local stock exchange continues to move in a sideways direction as investors await market catalysts to offer more trading leads, including the Fed meeting next week as well as the scheduled trade talks in October.

Meanwhile, Kenanga research maintained its bearish outlook on the stock index as it remains trading below the 50- and 100-day simple moving averages.

“Should the selling pressure persist, key support levels can be seen at 1,570 (S1) and 1,550 (S2). Conversely, overhead resistance levels can be found at 1,630 (R1) and 1,650 (R2),” it said.

Stocks seeing notable price action include BAT, which rose 34 sen to RM20.14 as US health officials impose regulations on vape products, which has eaten into the market share of cigarette manufacturers “Given the mounting health concerns, we believe this could arrest the surging local usage of vape products in the near-term,” said Affin Hwang research in a Friday note.

Other stocks seeing buying interest Hong Leong Bank rising six sen to RM1.45 and Petronas Chemicals, which extends its rally for a third day by five sen to RM7.56.

Stocks on the decline include Wesports dropping five sne to RM4.04, IHH falling four sen to RM5.65 and Top Glove slipping two sen to RM4.77.

Meanwhile, oil prices were softer as a meeting of the OPEC+ alliance yielded no decision on deepening crude supply cuts, Reuters reported.

Brent crude futures fell 0.2% to US$60.29 a barrel while US West Texas Intermediate crude lost 0.2% to US$54.96 a barrel.

Source: TheStar