Monday, August 30, 2010

FBM KLCI closes at fresh 30-month high

KUALA LUMPUR: The FBM KLCI closed at a 30-month high on Monday, Aug 30, with analysts saying it has the propensity to touch 1,460 by year-end, supported by strong investor interest, positive earnings by corporates, strengthening ringgit and ample liquidity.

These plus factors means the country's economic fundamentals were strong with the bourse ripe for increased investor interest particularly for well-capitalised stocks such as Genting and Maybank.

The KLCI ended at a 30-month high to 1,422.49, the highest since February 2008, after climbing from its opening level of 1,412.98 on strong interest for heavyweights. At midday, the benchmark index had surged to 1,422.26.

An analyst said Genting attracted strong attention from foreign investors following the stellar performance of its Singapore unit, and it is likely that the counter will breach the RM10.00 mark soon.

Genting closed 41 sen higher at RM9.45. Maybank, the country's largest lender, continued to surge as investors reacted positively to its financial results. It ended 1.57 per cent or 13 sen higher at RM8.39.

The analyst said the FBM KLCI was expected to touch 1,460 level by year-end in view of confidence over ample liquidity in the country and positive domestic consumption as well as the country's economic fundamentals.

He however said investors would also take a cautious stand ahead of Bank Negara Malaysia's monetary policy meeting on Thursday.

"The continuing strength of the market was not unexpected. Despite the global economic uncertainties, our maket continued its northward onslaught," said Kenanga Research in a research note. - Bernama

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