Tuesday, June 22, 2010

Blue chips close firmer, KLCI at 2-month high

KUALA LUMPUR: Share prices on Bursa Malaysia closed on a firm note on Monday, June 21 with the benchmark FBM KLCI at a two-month high, dealers said.

Stocks and currencies in the region rallied today after China's move to allow more flexibility in the yuan exchange rate boosted confidence in the global economy.

At 5pm, the benchmark FBM KLCI jumped 17.60 points to 1,335.29, after opening 3.09 points higher at 1,320.78.

"Buying interest of risky investments were triggered by the news, with Asian stocks gaining broadly as investors became more confident about China's role in the economic recovery," said one of the dealers.

The dealer said that speculation of China loosening the yuan's peg to the US dollar should provide some short-term catalyst for the markets globally with trade tension easing on the back of the surprise announcement.

The local bourse was also supported by interest in PLANTATION [] counters following the release of strong export numbers for the first 20 days of this month, supported by strong demand from China.

At closing today, the Plantation Index rose 110.87 points to 6,328.13. Of the commodity counters, Sime Darby increased 17 sen to RM8.15, IOI
Corporation gained 14 sen to RM5.18 and KL Kepong added 26 sen to RM16.36.

Cargo surveyor Societe Generale de Surveillance said Malaysia's palm oil exports were 15.5 per cent higher in the first 20 days of June while another surveyor Intertek Testing Services reported a 16.8 per cent increase.

The Finance Index surged 247.41 points to 12,043.02 and the INDUSTRIAL INDEX [] went up 35.44 points to 2,668.51.

The FBM Emas Index went up 125.04 points to 9,007.02, the FBM70 [] climbed 123.33 points to 8,933.53 and the FBM Ace Index rose 47.36 points to 3,923.09.

Advancers led decliners by 591 to 161 while 208 counters were flat, 403 untraded and 27 others suspended.

Volume increased to 921.005 million shares worth RM1.515 billion from 537.704 million shares valued at RM1.16 billion last Friday. - Bernama


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