KUALA LUMPUR: The local equity market rallied from the positive outcome of the meeting between the US and China over the weekend, leding hopes of a de-escalation of the trade war.
US President Donald Trump agreed to concessions such as holding off new trade tariffs on China and easing restrictions on Huawei in an effort to restart trade talks with Beijing.
At 9.05am, the FBM KLCI was up 7.29 points to 1,679.42, resuming an uptrend that had begun two weeks prior.
According to Kenanga research, the index had showed signs of cautiousness due to rising unceratinty over the G20 summit, but the trend remained bullish as the index had risen above the key simple moving averages.
"From here, resistances can be found at 1,690 (R1). A break above should see the index trend higher towards 1,730 (R2).
"Conversely, downside supports can be identified at 1,650 (S1) and 1,600 (S2)," it said in its weekly technical outlook.
Equities in active play in early Monday trading included Bumi Armada
rising 1.5 sen to 23 sen, KNM gaining two sen to 27.5 sen and IWCity climbing three sen to RM1.09.
KLCI-linked heavyweights with the biggest moves were Tenaga adding 16 sen to RM14, MISC rising eight sen to RM7.23 and Sime Darby Plantation dropping four sen to RM4.88
Despite the positive sentiment to arise from the US-China talks, observers remains cautious as further negotiations are no promise of a breakthrough, even as global economies continue to exhibit signs of a slowdown.
Japan's Nikkei Index was up 1.3% in early trade while SOuth Korea's Kospi Index was flat and Australia's ASX200 was up 0.6%.
Meanwhile, oil markets were in a bullish mood following Russia's agreement with Saudi Arabia to extend supply cuts for another six to nine months ahead of a scheduled Opec meeting on July 1 and 2.
Brent crude was up 89 cents or 1.4% at US$65.63 a barrel.
US crude rose 88 cents or 1.5% to US$59.35 a barrel after earlier hitting a peak of US$60.10, the highest in over five weeks.
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