FBM KLCI joins regional rally as Trump backs down on tariff threat

KUALA LUMPUR: The FBM KLCI started on a slightly stronger footing as global markets recovered from the earlier shock of a potential full-blown trade war between US and China.
Investors were relieved after US President Donald Trump walked back his statement that he would impose a 100% tariff on China in retaliation for the latter's imposition of rare earth controls, leading to a strong reboud on Wall Street.
The S&P500 gained 1.56% and the Nasdaq leapt 2.21% in a relief rally although both indices remains off previous week highs as the world's two largest economies attempt to navigate a course through the trade impasse.
At 9am, the FBM KLCI was up 2.14 points to 1,617.29, although the local market is expected to remain in consolidation mode given the absence of catalysts.
Rakuten Trade noted that the market undertone remains cautious amid the regional selldown.
"As the tension between Xi and Trump escalates, we believe traders will remain sidelined for now thus anticipate the index to trend within the 1,610-1,620 range today.
"Nonetheless, we envisage bargain hunters to emerge if the index hovers close to the 1,600 mark," it said in a note.
As the FBM KLCI picked up the pace, PETRONAS Chemicals gained nine sen to RM4.33 and PBB jumped 12 sen to RM11.12.
QL Resources rose eight sen to RM4.45, YTL Power was up three sen to RM4.12 and YTL Corp climbed three sen to RM2.68.
Genting, which yesterday announced it was making a takeover offer to privatise Genting Malaysia, rose 12 sen to RM2.98. Genting Malaysia jumped 19 sen to RM2.33 - two sen adrift of the takeover offer price of RM2.35 a share. It was the most actively traded share on Bursa Malaysia with 68.65 million shares done in the first 15 minutes of trade.
Other top actives were Top Glove down one sen to 69.5 sen, SCIB up 1.5 sen to 25 sen and Tanco gaining 0.5 sen to 85.5 sen.

Sumber : thestar.com.my