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Friday, November 16, 2018

Market Daily Report: KLCI up 0.72% as expectations on slowing trade tensions persist

KUALA LUMPUR (Nov 16): The FBM KLCI rose 0.72% for a third consecutive day of gains amid continued expectations of slowing trade tensions between the US and China ahead of the G20 meeting later this month.

The benchmark index trailed overnight gains at Wall Street to open higher today, and stayed flat in the green before closing up 12.17 points at 1,706.38.

Reuters reported that Asian shares had started firm after reports the US might pause on further China tariffs gave Wall Street a fillip, but a near 17% plunge in Nvidia's stock tempered the mood.

Across Bursa Malaysia, gainers led decliners by 450 counters against 345, whereas 390 counters traded unchanged. Some 1.85 billion shares worth RM1.89 billion exchanged hands.

An analyst at AmInvest Research attributed the market-wide gain to "short-term optimism based on global market movements and news on international trade".

"People are expecting [US president Donald] Trump and [China president] Xi Jinping to iron [out] some of the trade concerns in the G20 Summit in Argentina," said the analyst.

"China is a heavyweight for Asian shares, whereas the development over at Brexit is more isolated towards the EU," the analyst added.

Elsewhere in Asia, Hong Kong's Hang Seng Index rose 0.31%, South Korea's Kospi gained 0.21% and the Shanghai Stock Exchange Composite jumped 0.41%.

In Malaysia, gainers were led by KLCI component stock Nestle (M) Bhd, Apex Healthcare Bhd and Fraser & Neave Holdings Bhd. British American Tobacco (M) Bhd led decliners, followed by Panasonic Manufacturing Malaysia Bhd and KESM Industries Bhd.

Source: The Edge

Thursday, November 15, 2018

Market Daily Report: FBM KLCI up as China-US trade war de-escalation hope spurs Asian equities rise

KUALA LUMPUR (Nov 15): The FBM KLCI closed up 5.8 points or 0.34% at 1,694.21 as anticipation of China-US trade war de-escalation spurred Asian stock markets' rise.

In China, Hong Kong’s Hang Seng gained 1.75% while the Shanghai Stock Exchange Composite climbed 1.36%. Elsewhere across Asia, South Korea’s Kospi rose 0.97%.

Reuters reported that Asian stocks rose on Thursday, cheered by a bounce in Chinese equities on signs China and the US may be taking steps to de-escalate their bitter trade dispute, while oil prices resumed their retreat on fears of oversupply. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.7%.

In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told the KLCI appeared to have bottomed out as most of the negative news flow, such as the ringgit's weakening against the US dollar as well as the decline in crude oil prices, have been factored in by investors.

“I think the index (KLCI) has more or less bottomed out. Most of the bad news have been factored in and next year’s Budget has been announced, which has provided some clarity. There’s not much else that could drive the market down at this point.

“The next factor that could move the market would be the announcement of corporate earnings for the third quarter of the year,” he said.

Across Bursa Malaysia today, 1.99 billion shares worth RM1.88 billion were traded.
Top gainers included Ajinomoto (M) Bhd and British American Tobacco (M) Bhd. Leading decliners included Fraser & Neave Holdings Bhd and PPB Group Bhd.

Source: The Edge