Early gains for KLCI amidst muted regional market

Early gains for KLCI amidst muted regional market

KUALA LUMPUR: The FBM KLCI chalked up marginal gains in early trade Thursday, against the backdrop of muted regional markets.

At 9.05am, the FBM KLCI  was up 1.45 points to 1,680.42.

The early gainers included Nestle (M) Bhd, Petronas Dagangan Bhd, British American Tobacco (M) Bhd, Carlsberg Brewery Malaysia Bhd, Tenaga Nasional  Bhd, RHB Bank Bhd, Mesiniaga Bhd, Yinson Holdings Bhd and Petronas Chemicals Group Bhd.

Asian stocks rose and the dollar sagged on Thursday after Federal Reserve Chair Jerome Powell reinforced prospects of a U.S. interest rate cut later this month, according to Reuters.

In an appearance before his congressional overseers on Wednesday, Powell confirmed that the U.S. economy is still under threat from disappointing factory activity, tame inflation and a simmering trade war, it said.

CGSCIMB Retail Research said the FBMKLCI index closed 3.9 points lower yesterday as investors stayed cautious ahead of the keenly watched minutes from the Fed policy meetings.

It said US S&P500 reached record highs overnight after Federal Reserve Chair Jerome Powell leaned towards rate cuts in the future.

“Coupled with the overnight rally in oil prices, stocks on Bursa Malaysia are likely to trade higher today.

“Meanwhile, we think that some selected oil & gas stocks, such as Serba Dinamik Holdings Bhd may gain buying momentum today after crude oil prices jumped to a 7-week high. Resistance: 1,682 & 1,694. Support: 1,671 & 1,657,” it said.

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