Tuesday, September 28, 2010

Genting lifts FBM KLCI

KUALA LUMPUR: The FBM KLCI, which opened in the red on Tuesday, Sept 28 in line with the general decline at regional markets, clawed back into positive territory'' by mid-morning, boosted by gains including at Genting, PPB and MMC Corp.

US and European stocks slipped as investors, increasingly concerned about the fiscal condition of Ireland and Portugal, reassessed the strength of the equity'' markets' four-week rally, according to Reuters.

European debt fears also weighed on the euro, although the dollar posted only modest gains against other major currencies as expectations that the Fed will pour money into the U.S. economy sapped the greenback, it said.

At 10am, the FBM KLCI was up 0.59 point to 1,465.30. Gainers trailed losers by 154 to 204, while 209 counters traded unchanged. Volume was 239.72 million shares valued at RM170.21 million.

Japan's Nikkei 225 fell 0.76% to 9,529.79, the South Korean Kospi Index was down 0.30% to 1,855.16, the Shanghai Composite Index down 0.21% to 2,622.48, Taiwan's Taiex up 0.08% to 8,197.90, Singapore's Straits Times Index up 0.32% to 3,123.35 while Hong Kong's Hang Seng Index opened little changed at 22,329.82.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said due to the softer trading mode in the US on Monday night, the FBM KLCI would be in a shaky mood on Tuesday, with some heavy blue chip profit-taking movements as well as some rotational lower liner selling activity.

Lee said obvious profit-taking and liquidation activities had curtailed the market's advance and the FBM KLCI had peaked at 1,479.59 recently.

'However, the index rebound off its 1,445.33 correction low very swiftly. As such, trade with a short-term bias for most stocks over the next few weeks, using a relevant stop-loss level,' he said.

Genting was the top gainer, up 16 sen to RM9.89 after OSK Research maintained its buy call on the stock and upped its target price to RM14.05 (from RM11.70).

Kulim, Nestle, PPB, QL Resources and Proton added ten sen each to RM8.45, RM41.90, RM17.10, RM4.65 and RM4.90, respectively, while MMC Corp added seven sen to RM2.96.

Among the decliners, BAT fell 48 sen to RM48, F&N lost 20 sen to RM14.50, DFZ Capital down 12 sen to RM3.78, Lion Forest Industries lost nine sen to RM2, Plenitude and Ingress down five sen each to RM4.83 and 87 sen, while Spritzer lost four sen to RM1.01.

Actively traded stocks included SAAG, Kencana, Karambunai and Jaks Resources.




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