KUALA LUMPUR (Dec 5): The FBM KLCI pared some of its gains at mid-morning today, although broader market sentiment stayed positive in line with regional bourses.

At 10am, the FBM KLCI was up 0.47 points to 1,561.40.  The index had earlier risen to a high of 1,564.54.

Gainers led losers by 341 to 174, while 299 counters traded unchanged. Volume was 628.45 million shares valued at RM286.62 million.

The gainers included Nestle (M) Bhd, Chin Teck Plantations Bhd, Petronas Gas Bhd, Public Bank Bhd, Kuala Lumpur Kepong Bhd, Muhibbah Engineering (M) Bhd, Hong Leong Industries Bhd, SAM Engineering & Equipment Bhd and Master-Pack Group Bhd.

The actives included Sapura Enerny Bhd, Solarvest Holdings Bhd, Mudajaya Group Bhd, Bumi Armada Bhd, Sarawak Cable Bhd, Borneo Oil Bhd, DGB Asia Bhd and Khee San Bhd.

The losers included Heineken Malaysia Bhd, Petronas Dagangan Bhd, Hap Seng Consolidated Bhd, Tenaga Nasional Bhd, LPI Capital Bhd, Malaysia Airports Holdings Bhd and Hong Leong Bank Bhd.

Asian stocks edged up on Thursday on signs the United States and China were on track for a preliminary trade deal, though optimism was tempered by the almost daily shifts in prospects for defusing the damaging tariff war now in its second year, according to Reuters.

The fluid situation around Sino-U.S. trade negotiations has cast a pall on financial markets heading into Christmas, with major economies grappling under the weight of weak exports, investments and corporate profits, it said.

Hong Leong IB Research said the recent trade progress is more positive for the time being, hence market participants will be pricing in a potential deal to be struck and potential tariffs roll back in the phase one deal.

“Given the positive trading tone, we expect follow through buying interest to sustain at least over the near term. However, should any of the delay in trade deal and kicking in of the scheduled tariffs of 15% on about US$160 billion worth of Chinese goods, we expect the Dow’s upside to be capped around 28,200-28,500.

“Taking cues from overnight Wall Street performance, following some news citing that both the US and China could be nearer to form a trade deal, coupled with the statistics that window dressing activities are likely to bump up index heavyweights in December as well as the oversold status on KLCI, we believe buying sentiment may return, lifting the KLCI eventually.

“The KLCI’s support is at 1,550, while resistance is located around 1,580,” it said.