KUALA LUMPUR (Nov 8): The FBM KLCI retreated at mid-morning Friday as select index-linked stocks dragged, despite the uptrend at regional markets, but defended its position above the 1,600-point level.

At 10am, the FBM KLCI dipped 3.22 points to 1,696.11. The index had earlier risen to a high of 1,611.34.

Gainers led losers by 271 to 234, while 337 counters traded unchanged. Volume was 867.97 million shares valued at RM347.55 million. 

The decliners included United Plantations Bhd, Hong Leong Financial Group Bhd, PPB Group Bhd, Allianz Malaysia Bhd, Kuala Lumpur Kepong Bhd, Petronas Gas Bhd, Malaysian Pacific Industries Bhd, Sarawak Plantations Bhd, Aeon Credit Service (M) Bhd and Alliance Bank Malaysia Bhd.

The actives included Sapura Energy Bhd, Sprint Art Holdings Bhd, Trive Property Group Bhd, NetX Holdings Bhd, Tanco Bhd, Velesto Energy Bhd and Bumi Armada Bhd.

The gainers included Southern Acids (M) Bhd, British American Tobacco (M) Bhd, Guan Chong Bhd, Hengyuan Refining Company Bhd, Amway Holdings (M) Bhd, UWC Bhd, Hong Leong Industries Bhd and VSTECS Bhd.

Reuters reported that world stocks rallied to near record highs on Friday after China said it had agreed with the United States to cancel tariffs in phases, a key demand of Beijing for sealing a deal to end a trade war that has slowed economic growth and roiled markets.

MSCI's gauge of stocks across the globe rose slightly to stand at 543.70, just a hair off the record high of 550.63 reached in January 2018, it said.

Hong Leong IB Research said with the rise in optimism over trade developments as both the US and China agree on the removal or roll back of trade tariffs in phases, it anticipates market participants to deploy a risk-on strategy and more exposure may be seen in equities, translating to further record highs on Wall Street.

“At this juncture, the positive catalysts are more encouraging and we opine the Dow may extend its upward move to 28,000,” it said.

On the local front, HLIB expects the buying interest to spill over, eventually lifting the KLCI higher towards 1,620.

“Also, we think traders could also position themselves on the index heavyweights on the back of potential window dressing activities in December should there be any weakness in the near term.

“The KLCI’s trading range will be seen around 1,580-1,620,” it said.