KUALA LUMPUR (Jan 2): The FBM KLCI rose 0.39% at mid-morning today after Malaysia's Purchasing Managers' Index — a composite single-figure indicator of manufacturing performance — increased to a 15-month high in December of 50.0, from 49.5 in November, while crude palm oil (CPO) remained firmly above the RM3,000 mark.

At 10am, the FBM KLCI rose 6.22 points to 1,594.98.

Gainers led losers by 365 to 178, while 321 counters traded unchanged. Volume was 650.84 million shares valued at RM322.97 million.

The gainers included Carlsberg Brewery Malaysia Bhd, Kuala Lumpur Kepong Bhd, Public Bank Bhd, Petronas Gas Bhd, Hong Leong Bhd, Allianz Malaysia Bhd, Heineken Malaysia Bhd, Greatech Technology Bhd and Revenue Group Bhd.

The actives included Bright Packaging Industry Bhd, TDM Bhd, Sapura Energy Bhd, JCY International Bhd, PUC Bhd and Borneo Oil Bhd.

The decliners included New Hoong Fatt Holdings Bhd, Hartalega Holdings Bhd, Dutch Lady Milk Industries Bhd, S P Setia Bhd, Power Root Bhd, Sarawak Oil Palms Bhd and Hong Leong Industries Bhd.

Bloomberg said traders eyed a cautious start on Thursday in Asia as they assessed the latest policy move by China's central bank and awaited data on the country's manufacturing sector. Australia's dollar and the yen edged lower.

Activity is set to pick up as most global markets reopen from holiday closures on Jan 1, though Japanese equities remain shut for the remainder of this week. The People's Bank of China on Wednesday said it will increase the supply of cheap funding to banks, a move of policy support in line with market expectations, it said.

Hong Leong IB Research said Wall Street could remain in the uptrend intact formation with the positive newsflow on the trade front and traders will be focusing on the upcoming signing ceremony in the White House on Jan 15, coupled with the next major discussion on the Phase Two trade talks moving forward.

It said the Dow may stay within the uptrend formation over the near term and trading range could be located around 28,000-29,000.

"Despite the selldown on the index heavyweights in FBM KLCI on the final trading day of 2019, we expect the near-term sentiment to stay positive with President Trump [stating firmly he will sign the] Phase One Trade Deal with China.

"Hence, the FBM KLCI could regain traction in January and may revisit 1,600 level. At this juncture, traders may look into plantation stocks amid the firm crude palm oil prices holding steadily above RM3,000 level," it said.