Friday, July 16, 2010

Mild bargain hunting

KUALA LUMPUR: Share prices on Bursa Malaysia closed broadly higher on Friday, July 16, supported by mild bargain hunting activities as investors lauded the government's subsidy rationalisation programme, dealers said.

The FBM KLCI closed 2.57 points or 0.19% higher at 1,336.65. The 30-stock index, which opened 0.22 of a point lower at 1,333.86, recorded an intra-day high of 1,336.65 and an intra-day low of 1,332.68.

The INDUSTRIAL INDEX [] shed 4.45 points to 2,655.03, the PLANTATION [] Index slipped 9.88 points to 6,289.5 but the Finance Index surged 51.931 points to 12,100.61.

The FBM Emas Index improved 29.02 points to 9,048.43, the FBM70 [] Index increased 23.71 points to 9,085.5 but the FBM Ace Index eased 1.71 points to 3,764.61.

Gainers led losers 476 to 206 while 263 counters were unchanged, 423 untraded and 28 others were suspended. Total volume improved to 793.61 million shares, worth RM1.196 billion.

MIMB Investment Bank's Head of Research Chan Ken Yew said buying interest was mostly seen in small-and-medium cap counters as well as consumer-driven stocks like glove, finance and banking related stocks.

"Consumer-driven stocks like glove and banking are still doing good especially with increasing public consumption activities that continues to drive the country's growth," he said.

Chan also said the government's move was also timely as public consumption would likely be among the main driver of the domestic economy. ''

On Thursday, the government announced the reduction of subsidies for petrol, diesel, liquefied petroleum gas (LPG) and sugar as a first step towards the gradual subsidy rationalisation programme effective Friday.

Newly-listed CapitaMalls Malaysia Trust closed at 98 sen, or two sen below its reference price of RM1.

Bina Puri surged 31 sen to RM1.42 after the company announced during the midday break that its joint venture with UEM CONSTRUCTION [] Sdn Bhd had been appointed the main contractor for the construction of KL International Airport (KLIA) New Permanent LCCT complex at the KLIA. The total contract value is RM997.23 million.

Scomi Engineering jumped 36 sen to RM1.51 after the company announced a total gross special interim dividend of 29.5 sen per share. The special interim dividend will be paid on Aug 26.

Lafarge Malayan Cement advanced 16 sen to RM6.64 after Lafarge SA place out an 11.2% stake in the former at RM6.24 a share.

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