Monday, August 2, 2010

Bursa closes higher, boost from heavyweights, lower liners

KUALA LUMPUR: Bursa Malaysia closed higher on Monday, Aug 2 on rotational play in selective heavyweights and lower-liners despite a weak lead from Wall Street, dealers said.

At 5pm, the FBM KLCI rose 2.68 points, or 0.19 per cent, to close at 1,363.6.

The benchmark index opened 3.31 points higher at 1,364.23 in the morning and was traded between 1,361.37 and 1,368.43.

On Wall Street, the Dow Jones Industrial Average closed down 0.01 per cent. The S&P 500, however, ended up 0.01 per cent and the Nasdaq Composite up 0.13 per cent.

Dealers said active market players lifted the local bourse with broad-based buying, supported by positive market sentiment across regional markets.

MIMB Investment Bank Bhd head of research, Chan Ken Yew, said the market would see companies that were traded way below their asset value to be taken private in view of strong liquidity.

"We believe such news flow should keep the interest of the local market warm," he said.

Chan expected the market to see mid- and small-capitalised stocks to be the theme play in the coming months as the upside of FBM KLCI seemed to be limited in contrast to smaller-cap stocks.

The immediate upside resistance was expected to be pegged at 1,380 and support could be found at 1,350, he said. ''

The PLANTATION [] Index added 19.15 points to 6,418.53 and the INDUSTRIAL INDEX [] gained 1.37 points to 2,669.04. The Finance Index, however, fell 1.22 points to 12,330.4.

The FBM Emas Index rose 29.101 points to 9,241.87, FBM70 [] Index increased 39.03 points to 9,223.04 and the FBM Ace Index went up 27.16 points to 3,821.93.

Gainers led losers 494 to 280 while 243 counters were unchanged, 348 untraded and 23 others suspended. Volume rose to 963.782 million shares worth RM1.283 billion from 918.318 million shares worth RM1.422 billion last Friday.


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