Monday, November 8, 2010

Major hurdle crossed, now for all-time high

KUALA LUMPUR: Fund buying of blue chips pushed the FBM KLCI near the all-time intra-day high of 1,524 on Monday, Nov 8 as the market played catch-up with key markets, with SUNRISE BHD [] in focus after it received a takeover officer from UEM Land Bhd.

The broader market displayed the buying interest in lower liners with retail participation picking up.

At the close, the FBM KLCI was up 8.20 points to 1,519.84, which was enough to mark a fresh closing high for the index. Its last all-time closing high was 1,516 in January 2008.

Turnover was 1.52 billion shares valued at RM2.25 billion. Advancers led gainers 592 to 291 while 253 stocks were unchanged.

PLANTATION []s climbed after crude palm oil futures rose RM93 to RM3,288 but off the day's best of RM3,347.

Among the key regional markets, Japan's Nikkei 225 rose 1.11% to 9,732.92, Hong Kong's Hang Seng Index added 0.35% to 24,964.37, Shanghai's Composite Index 0.96% to 3,159.51 and Singapore's Straits Times Index 1.64% higher at 3,293.55.

At Bursa Malaysia, Kulim was the top performer, notching gains of 96 sen to RM12.90 after its recent corporate exercise involving a share split, bonus issue and issuance of free warrants.

KFCH added 37 sen to RM4.29 and QSR 31 sen to RM5.79 and QSR-WB 30 sen to RM2.69.

Sunrise was in the spotlight, advancing 70 sen to RM3.22 with 44.77 million shares done while UEM Land gained 23 sen to RM2.49 with 32.93 million units done.

Hwang DBS Vickers Research said UEM Land's voluntary general offer fairly valued Sunrise at RM2.80, ex-dividend. It said the takeover was likely to be successful as 40% acceptance had already been secured.

'Maintain Buy, TP lifted to RM3.00 (from RM2.60) to reflect VGO price and 20sen interim net dividend,' it said.

DiGi was the top loser, down 44 sen to RM24.96. Malaysian Smelting Corp lost 22 sen to RM4.58 after posting losses on impairments while Supermax fell 14 sen to RM4.41 after announcing third quarter earnings dipped to RM38.12 million from RM40.15 million a year ago.

Masterskill, which fell to a fresh low of RM2.25 in intra-day trade, managed to end the day off its low. It lost seven sen to RM2.33.


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