KLCI remains upbeat despite Trump threats, oil prices bounce higher

KUALA LUMPUR: The FBM KLCI hit a trading high of 1,694.55 before drifting lower into the close of the morning session.

At 12.30pm, the index was up 5.21 points to 1,688.83, within earshot of a resistance level of 1,690 as global equities rose on renewed expectations for a US-China trade resolution.

While the trade truce has helped to improve lift the overall investment mood, comments made by US President Donald Trump overnight dampened investor hopes even as he launched a fresh threat of tariffs on US$4bil of EU goods. 

China's major indices were flat at midday, having fallen early in morning trade on profit-taking after Monday's strong advance.

Hong Kong's Hang Seng Index meanwhile was 1.3% higher as it played catch up to world markets after a long weekend.

Japan's Nikkei Index was 0.2% higher while South Korea's Kospi Index slid 0.3% on Japan's export ban on high-tech materials to its neighbour.

On Bursa Malaysia, trading volume picked up over recent days at 1.61 billion shares valued at RM1.2bil in the morning session. 

Market breadth was evenly spaced at 377 gainers compared to 384 decliners and 357 counters unchanged.

KNM continued to top the active trading list, but was down 1.5 sen to 28 following the previous session's strong advance.

Compugates shed 0.5 sen to two sen and Ekovest rounded out the top three unchanged at 88.5 sen.

Most KLCI-linked counters put in a positive performance, led by the banking sector.

Maybank rose four sen to RM8.95, Public Bank aded two sen to RM23.02 and Hong Leong Bank climbed 14 sen to RM19.12. 

Tenaga Nasional also rose, adding 10 sen to RM14.06.

Meanwhile, oil markets rebounded following a slide in early trade with Brent crude trading unchanged from the previous session at US$65.06 a barrel.

US crude rose eight cents to US59.01 a barrel.

While anxieties over demand growth have plagued markets, extended supply cuts by Opec into 2020 have helped to prop up prices.

The ringgit meanwhile slipped 0.15% against the greenback to 4.1405 on fears the US Federal Reserve my be implementing a lower rate cut than had previously been expected.

Analysts are raising the probability of a 25bps cut instead of the 50bps reduction expected in July.

The local currency was 0.1% lower against the pound serling at 5.2318 and flat against the Singapore dollar at 3.054.