Thursday, September 30, 2010

FBM KLCI stays in the black at mid-morning

KUALA LUMPUR: The FBM KLCI rose 0.91 points to 1,462.69 at mid-morning on Thursday, Sept 30, lifted by gains at key blue chips including AMMB, MISC, Maybank and Public.

Meanwhile, regional markets were mixed after the overnight dip at Wall Street, which fell in the absence of fresh economic data, save for the unemployment claims due out later today.

Also this morning, data showed Japan's industrial output unexpectedly fell 0.3% in August in a sign the economy's recovery is losing momentum due in part to a slowdown in export growth.

At the regional markets, Japan's Nikkei 225 slipped 0.68% to 9,494.67, Singapore's Straits Times Index dipped 0.24% to 3,098.60, the South Korean Kospi shed 0.08% to 1,864.99, and Hong Kong's Hang Seng Index opened 0.4% lower at 22,287.08.

Meanwhile, the Shanghai Composite Index added 0.44% to 2,622.08 and the Taiwan Taiex was up 0.13% to 8,251.32.

On Bursa Malaysia, gainers trailed losers by 175 to 210 while 219 counters traded unchanged at 10am. Volume was 221.91 million shares valued at RM205.63 million.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said that due to the weaker tone in the USA last night, the FBM KLCI would be in a range trading mode today, with some blue chip profit-taking movements as well as some rotational lower liner selling activity.

Late afternoon bargain hunting activities by local funds may cause the index to end little changed, he said.

'Obvious profit-taking and liquidation activities have curtailed the market's advance and the FBM KLCI has peaked at 1,479.59 recently. However, the index rebounded off its recent 1,445.33 correction low very swiftly.

'For now, we foresee range trading between the 1,445.33 low and the 1,479.59 high. As such, trade with a short-term bias for most stocks over the next few weeks, using a relevant stop-loss level,' he said in a note to clients today.

Shares of UBG BHD [] climbed after it received a notice of mandatory takeover offer from PetroSaudi International Ltd, Seychelles and Sheikh Tarek Essam Ahmad Obaid. It rose 21 sen to RM2.46.

Meanwhile, Putrajaya Perdana and Loh & Loh also gained after the receiving the same notice. The two counters added 51 sen and 22 sen, respectively to rise to RM4.71 each.

Hartaleda added 20 sen to RM4.67, Nestl'' was up 18 sen to RM42.20, MISC rose 11 sen to RM8.85, Kulim up 15 sen to RM8.54, Masterskill rose 10 sen to RM3.35 while MMC Corp gained nine sen to RM3.03.

Among the banking stocks, HLFG and Maybank added four sen each to RM9.04 and RM8.75, Public Bank up six sen to RM12.58 while AMMB rose eight sen to RM5.93.

Hai-On was the top loser and fell 32 sen to RM2.94; other decliners included United Malacca, DFZ Capital, BAT, PPB and Genting.

The actives this morning included Karambunai, Talam, UEM Land, Berjaya Corp and UBG.


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