KUALA LUMPUR, July 2 ― Bursa Malaysia extended its relief rally to open higher for the second consecutive day after the US and China agreed over the weekend to restart trade negotiations.
At 9.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.39 points to 1,686.01 from yesterday's close of 1,683.62.
At the opening, the index climbed 2.16 points to 1,685.78.
Market breadth was positive as gainers led losers 127 to 102, with 181 counters unchanged, 1,428 untraded and 19 others suspended.
Turnover stood at 131.64 million units worth RM52.87 million.
In a note today, Malacca Securities Sdn Bhd said the US-China trade truce had buoyed hopes that the trade dispute which had consumed the global equity environment over the past few quarters could be close to a resolution.
This is despite no time frame being set for the talks and China warning that negotiations could be long drawn.
However, the research house cautioned that even after yesterday’s market reaction, which was relatively benign, the FBM KLCI had tipped into toppish territory again and this could well limit further near-term gains.
“At the same time, fresh tariff concerns have arisen as the US is now threatening to impose tariffs on European goods and this is likely to leave sentiment guarded again.
“Therefore, we think the key index could see renewed volatility in the near-term as fresh concerns mount and profit taking activities accelerate. The resistance levels are at 1,690 and 1,670, while supports are at 1,680 and 1,670 respectively,” it said.
Among heavyweights, Maybank and Tenaga ticked up two sen each to RM8.93 and RM13.98 respectively, while Public Bank, Petronas Chemicals and CIMB were unchanged at RM23.00, RM8.74 and RM5.41.
Of the actives, Compugates and KNM eased half-a-sen to two sen and 29 sen, Ikhmas ticked up half-a-sen to 23.5 sen, and Greatech was two sen firmer at RM1.14, with Prestariang flat at 45.5 sen.
Nestle topped the gainers list, bagging 70 sen to RM149.10, while Atlan was the top loser, losing eight sen to RM3.92.
The FBM Emas Index gained 16.49 points to 11,901.65, the FBMT 100 Index increased 17.16 points to 11,744.73 and the FBM Emas Shariah Index was 16.02 better at 12,282.10.
The FBM 70 improved 23.84 points to 14,808.76 and the FBM Ace gained 5.77 points to 4,543.60.
Sector-wise, the Financial Services Index strengthened 29.99 points to 16,802.90 and the Industrial Products & Services Index inched up 0.01 of-a-point to 163.53.But, the Plantation Index eased 6.50 points to 6,971.78. ― Bernama
