KLCI plays catch-up to 3-day climb on Wall Street

  • Business
  • Friday, 07 Jun 2019

KUALA LUMPUR: The FBM KLCI rose on Friday, tracking a three-day climb on Wall Street on growing optimism over a US Federal Reserve policy rate cut and an overnight report that Washington was considering a delay on tariffs of Mexican imports.

At 9.09am, the FBM was up 5.39 points to 1,649.48. Trading volume was 131.83 million shares valued at RM88.63mil. There were 209 gainers versus 74 decliners and 146 counters unchanged.

In its technical market outlook, Kenanga research said the primary downtrend on the local index remained intact as the share remains below its 100-day simple moving average. 

"Should the index convincingly break above its 100-day SMA, we opine that the outlook could turn bullish. 

"From here resistance levels can be identified at 1,650 (R1) and 1,670 (R2). Conversely, supports can be found at 1,610 (S1) and 1,585 (S2)," it said.

The most actively traded counters in the early morning session included Ekovest up two sen to 79.5 sen, Bumi Armada gaining one sen to 21 sen and Tiger rising 0.5 sen to 5.5 sen. 

Heavyweights on the move were Digi climbing nine sen to RM4.86 and PPB jumping 24 sen to RM18.98. 

Tenaga Nasional meanwhile shed 16 sen to RM12.66 and Petronas Dagangan dropped eight sen to RM25.70.

Wall Street put in a positive performance overnight, extending its winning streak to three straight sessions. Equities have been supported over recent days by growing confidence that the US Federal Reserve will cut interest rates to support the economy.

Japan's Nikkei Index tracked the bullish turn, rising 0.4% in Friday trade. Australia's ASX200 Index put in a similar performance, gaining 0.4%.

Oil prices are also on the rise following the US-Mexico trade report. Brent crude futures were up 50 cents at US$62.17 a barrel while US crude grew 50 cents to US$53.09 a barrel.

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