Friday, September 17, 2010

Late profit taking on Tenaga, Sime

KUALA LUMPUR: Late profit taking on key heavyweights including TENAGA NASIONAL BHD [] and Sime Darby pushed the key index into the red on Friday, Sept 17 despite the firmer broader market and key regional markets.

The FBM KLCI closed 5.98 points down at 1,466.97. Turnover was 967.54 million shares done valued at RM1.91 billion. Advancing counters beat decliners 446 to 296 while 268 counters were unchanged.

Market sentiment remained firm despite the intermittent profit taking on stocks which had a strong run-up in recent weeks.

The 30-stock KLCI is up 15.26% year-to-date, making it the fourth best performer in Asia. Over the past week, the KLCI had risen 29.19 points, underpinned by the strengthening ringgit and it is above analysts' earlier forecast of 1,450.

A foreign research house said with market up 15.26% year-to-date (27.79% in US dollar terms), and valuations are no longer a bargain.

'But for investors who are looking for another reason to stay positive, the upcoming Budget 2011, which will be unveiled on Oct 15, 2010, offers reasons to cheer. Our pre-and-post Budget performance suggest that the market usually generates positive returns, albeit anaemic, averaging 3% before budget and 1% after. Infrastructure and property sectors tend to perform better ahead of Budgets,' it said.

At the close on Friday, Japan's Nikkei 225 rose 1.23% to 9,626.09; Hong Kong's Hang Seng Index added 1.29% to 21,970.86, Singapore's Straits Times Index advanced 0.3% to 3,076.37 but Shanghai's Composite Index fell 0.15% to 2,598.69.

At Bursa Malaysia, Tenaga fell 22 sen to RM8.22, dragging the KLCI down 2.32 points while Sime Darby shed 14 sen to RM8.15, weighing down the index by another 2.05 points. IOI Corp lost 11 sen to RM5.60 and MISC 20 sen to RM8.80, pushing the index down another 2.95 points.

Kulim fell the most, down 28 sen to RM8.22, KLK and HL Bank 18 sen each to RM17.10 and RM9.02 while IJM surged 17 sen to RM5 and SP Setia 13 sen lower at RM4.37.

F&N was the top gainer, adding 60 sen to RM14.90, Nestle 44 sen to RM42.44 and BAT 40 sen to RM47.60.

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