Thursday, July 8, 2010

Asian markets advance

KUALA LUMPUR:'' Asian stock markets advanced on Thursday, July 8, mirroring the overnight gains at Wall Street where the Dow Jones Industrial Average surged nearly 3%.

US stocks logged their best one-day gain in about six weeks on Wednesday after a bullish forecast from financial company State Street Corp fueled optimism about the coming earnings season and helped the S&P 500 break above a major resistance level.

The Dow Jones Industrial Average climbed 274.66 points, or 2.82%, to 10,018.28 points. The Standard & Poor's 500 Index gained 32.21 points, or 3.13%, to 1,060.27 points. The Nasdaq Composite Index advanced 65.59 points, or 3.13% to 2,159.47 points.

At the regional markets, Japan's Nikkei 225 Index jumped 2.67% to 9,527.21 points, the South Korean Kospi Index 1.35% to 1,698.23 points, Singapore's Straits Times Index 1.19% to 2,895.04 points, Taiwan's Taiex Index 0.98% to 7,608.13 and the Shanghai Composite Index up 0.58% to 2,435.18 points.

Hong Kong's Hang Seng Index, meanwhile, opened 1.8% higher at 20,221.69 points.

At Bursa Malaysia, the FBM KLCI rose 2.90 points to 1,314.65 points at 10am, lifted by gains including at Sime Darby, PPB and Tanjong.

Market breadth was positive with gainers outpacing losers by 248 to 80, while 150 counters traded unchanged. Volume was 128.49 million shares valued at RM150.65 million.

Commenting on the FBM KLCI, RHB Research Institute Sdn Bhd said after retreating to the 40-day SMA near 1,304, the FBM KLCI recovered with mild bargain-hunting support in the afternoon session on Wednesday.

At the close, the FBM KLCI ended with a second positive candle, implying further upside potential on Thursday, it said.

"In fact, with a fresh 'double buy' signal on the short-term momentum indicators, it is set to rechallenge the 10-day SMA near 1,315 soon. A further clearance of the 10-day SMA will confirm a technical rebound on the index.

"However, given the lower participation level of late, the current recovery might not last, in our view. Immediate support is seen near the major psychological level at 1,300, followed by the 40-day SMA," it said on July 8.

Among the major gainers on Bursa Malaysia this morning, Nestle added 30 sen to RM35.10, PPB up 20 sen to RM16.30, Top Glove 18 sen to RM13.64, BAT 14 sen to RM43.54 and Tanjong rose 12 sen to 17.78.

Meanwhile, Berjaya Land added nine sen to RM4.30, Boustead eight sen to RM3.88, Sime Darby seven sen to RM7.71 and Berjaya Corp two sen to RM1.25.

SunREIT, which made its debut on the Main Market of Bursa Malaysia today, was the most actively traded counter with 36.64 million units done. The counter slipped 1.5 sen to 88.5 sen at 10am.

Other actives included both Sinotop's mother and rights shares, KNM, Berjaya Corp, Genting Malaysia and Kumpulan Europlus.


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