KUALA LUMPUR (Aug 8): The FBM KLCI looked set to test the crucial 1,800-point level today as it rose in early trade, tracking gains at mosr regional markets.
At 9.05am, the FBM KLCI rose 5.00 points to 1,796.09.
The early gainers included Far East Holdings Bhd, Hong Leong Industries Bhd, Hartalega Holdings Bhd, Tenaga Nasional Bhd, Malaysia Airports Holdings Bhd, Riverview Rubber Estates Bhd, ViTrox Corp Bhd, Petronas gas Bhd and Hengyuan Refining Company Bhd.
Asian shares rose on Wednesday on the back of firmer Wall Street earnings while expectations for increased Chinese stimulus helped take the edge off wider concerns about the worsening Sino-U.S. trade dispute, according to Reuters.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.22 percent while Japan’s Nikkei ticked up 0.05 percent, it said.
Hong Leong IB Research in a traders’ brief said although market sentiment remains sturdy as investors focused on solid quarterly earnings, the recent upward move may attract profit taking activities, should there be any negative news flows from the trade developments.
“Meanwhile, the proposed tariffs of 25% on the US$200 billion worth of Chinese goods will be on a scheduled hearing during 20-23 Aug.
“As investors set aside the trade developments and noticing stronger inflows from foreigners, we may anticipate extended rebound on the broader market.
“However, cautious sentiments will still prevail ahead amid the uncertain August reporting month.
“Hence, we opine that the KLCI’s upside will be limited near 1,800,” it said.
Source: The Edge