KUALA LUMPUR: Bursa Malaysia started the start quarter on Monday on a firmer note, with Tenaga Nasional continuing to power the blue chips higher but whether the market can hold on to the gains remains to be seen due to the growing US-China trade tensions and profit taking after the surge last Friday.
At 9.02am, the FBM KLCI was up 3.43 points or 0.2% to 1,694.84. Turnover was 44.29 million shares valued at RM24.47mil. There were 100 gainers, 69 losers and 127 counters unchanged.
Last Friday, stock market data showed foreign funds turned net buyers after 37 days, with net buying at RM259.4mil.
Asian shares were subdued early Monday ahead of a week packed with major economic events, while the euro was briefly shaken by signs a German political deal on immigration might be in trouble, Reuters reported.
Japan's Nikkei dipped 0.2%, with a survey of manufacturers showing sentiment had darkened a shade in the face of trade war threats. MSCI's broadest index of Asia-Pacific shares outside Japan was a fraction firmer in early trade.
Tension is growing ahead of a July 6 deadline when the US and China are due to impose US$34bil of tariffs on their respective imports.
On the outlook for Bursa Malaysia, Kenanga Research cautioned that despite last Friday’s gain, the chart lacks a strong sign of a trend reversal.
“Should market sentiment continue improving, the index may head back higher towards 1,720 (R1) where a break above it will be a strong sign of a trend reversal as the next resistance is identified at 1,760 (R2).
“Conversely, immediate supports can be identified at 1,680 (S1) and 1,620 (S2),” it said.
Tenaga rose 20 sen to RM14.84 while CIMB added 10 sen to RM5.55. Aeon Credit
gained 26 sen to RM14.66, Westports 16 sen to RM3.55 and Cypark eight sen higher at RM2.37.
Petronas Dagangan fell 36 sen to RM24.40 with 100 shares done, Public Bank shed 15 sen to RM23.30, Press Metal 12 sen to RM4.24.
Pavillion REIT lost 24 sen to RM1.54, SP Setia 10 sen to R<3 and sunway reit was eight sen lower at rm1.69.
MPI lost 18 sen to RM10.06 and Lafarge 14 sen to RM2.96 while Sapura Energy was the most active with 100 million shares done, down one sen to 63 sen.
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