CIMB, Axiata lead KLCI higher as trade tensions ease

KUALA LUMPUR: Bursa Malaysia caught on to the relief in global equities following the agreement between the US and China to hold off additional trade tariffs for three months.

The FBM KLCI retreated 16 points to a supporting level of 1,680 at last Friday's close in the lead up the the G20 summit where US President Donald Trump met with China President Xi Jinping to negotiate a way out of the ongoing trade conflict.

At 12.30pm, the FBM KLCI surged 15.93 points to 1,695.79. Trading volume was 1.37 billion shares valued at RM1.06bil. There were 477 gainers versus 314 decliners and 263 counters unchanged.

CIMB jumped 24 sen to to RM6 while Axiata climbed 24 sen to RM3.87. The two stocks pushed the KLCI higher with a combined seven-point gain on the index.

Sime Darby Plantation gained 12 sen to RM4.82, Petronas Gas rose 46 sen to RM19.40 and Hong Leong Bank added 24 sen to RM20.62.

Nestle led the index lower with a RM1.70 loss to RM147.70. IHH saw slight profit-taking following last week's rally, losing two sen to RM5.35.

Among the most actively traded stocks, Bumi Armada rose two sen to 18 sen, MyEG gained 10 sen to RM1.21 and Jaks climbed 3.5 sen 53.5 sen.

Oil prices surged on the easing of trade tensions while Opec members are expected to agree to supply cuts at a meeting later this week.

WTI Crude rose US$2.73 a barrel to RM53.66 a barrel while Brent crude jumped US$2.94 a barrel to US$62.40 a barrel.

In currencies, the ringgit rose as investors took on more risk appetite, gaining 0.25% against the US dollar to 4.1727. It rose 0.6% against the pound sterling at 5.3289 and 0.2% against the Singapore dollar at 3.0507.