Monday, July 12, 2010

Nestle surges, HL Bank dips

KUALA LUMPUR: Shares of Nestle and LPI climbed in early trade on Monday, July 12 but banks including Hong Leong Bank and AMMB slipped.

The FBM KLCI was up 1.13 points to 1,325.44 at 9.06am. Turnover was 16.63 million shares valued at RM12 million. There were 74 gainers, 27 losers and 71 stocks unchanged.

Hwang DBS Vickers Research had said on Monday, the local stock market could inch its way up as buying interest returns in the coming weeks.

It added the market, after coming off from a depleted base, trading activity should rise going forward. And this is typically the case when there is no more external distraction ' such as the FIFA World Cup football tournament which ended early Monday morning ' thus letting investors to shift their focus back to investment matters.

Nestle advanced RM1.40 to RM36.60 with 1,500 shares done. LPI added 20 sen to RM17 with 7,900 shares done after the recent proposed corporate exercise.

Lafarge Malayan Cement (LMC) added 10 sen to RM6.60. Lafarge SA, the single largest shareholder of LMC is looking to dispose of up to 11.2% in the latter.

Lafarge SA, which presently holds 62.2% of LMC, had said on Friday, July 2 it had decided to explore the potential sale of a minority interest of up to 11.2%.

Other gainers were Kulim, up eight sen to RM7.48 and Axiata seven sen to RM4.07.

BAT was the top loser, down 46 sen to RM43.54 in thin trade while Tanjong shed 24 sen to RM17.54.

HLBank lost 35 sen to RM8.40 with only 200 shares done and AMMB slipped five sen to RM5.02.

CIMB Equities Research reaffirmed its overweight call on the banking sector in view of the potential re-rating catalysts and AMMB remained its top pick for the sector.


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