KUALA LUMPUR: The FBM KLCI joined in a global rally in equities as investors pinned their hopes on a US policy rate cut following yesterday's ECB signal for more monetary easing.
Helping to further improve sentiment was the overnight news that US President Donald Trump would meet with Chinese Premier Xi Jin Ping at the G20 summit in Japan next week.
Early market indices included Japan's Nikkei Index, rising 1.6%, South Korea's Kospi Index climbing 1.2% and Australia's ASX200 Index gaining 1.1%.
At 9.05am, the local benchmark FBM KLCI looked ready to continue its recent uptrend with a 0.77 point lead at 1,653.53.
Despite the recent advances, Kenanga research maintained a conservative technical view.
"The primary downtrend remains intact as it remains below its 100-day SMA. We also observed the index’s previous efforts in testing its 100-day SMA.
"Should the index decisively breaks above its 100-day SMA, we opine that the outlook could turn bullish. From here, resistances can be found at 1,670 (R1) and 1,705 (R2). Conversely, supports are identified at 1,610 (S1) and 1,585 (S2)," it said.
Over the wider stock exchange, trading volume was 83.28 million shares valued at RM48.54mil There were 196 gainers versus 47 decliners and 132 counters unchanged.
Most actively traded counters were Mestron up one sen to 17.5 sen, Greatec up 0.5 sen to 99.5 sen and BJLand unchanged at 19.5 sen.
Some leading gainers were Petronas Dagangan rising 32 sne to RM25.80, MAHB climbing 16 sen to RM8.09 and Oriental adding 12 sen to RM6.75.
Oil prices meanwhile rose on hopes for US-China trade deal while Middle East tensions continued to lift.
Brent crude futures were up 34 cents at US$62.48 a barrel and US crude gained 44 cents to US$54.34 a barrel.
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