Thursday, December 9, 2010

FBM KLCI extends gains in early trade

KUALA LUMPUR: Asian markets, including Bursa Malaysia, mostly rose in early traded on Thursday, Dec 9 in line with the slightly higher overnight close at Wall Street.

However, while the FBM KLCI rose 3.45 points to 1,513.51 at 10am, lifted by gains including at Petronas Chemicals, Petronas Dagangan, Petronas Gas, Maybank and Genting, analysts cautioned that regional investor sentiment could dictate the direction of the local market.

Gainers led losers by 256 to 152, while 202 counters traded unchanged. Volume was 308.10 million shares valued at RM465.68 million.

At the regional markets, Japan's Nikkei 225 was up 0.21% to 10,253.72, the Singapore Straits Times Index added 0.26% to 3,211.16, Taiwan's Taiex gained 0.79% to 8,772.53, South Korea's Kospi rose 0.69% to 1,969.22 and Hong Kong's Hang Seng Index opened 0.4% higher at 23,195.24.

Meanwhile, the Shanghai Composite Index slipped 0.37% to 2,838.05.

RHB Research Institute Sdn Bhd said yesterday's surprise jump on the bargain-hunting activities had led the FBM KLCI to close more positive, compared to the previous closings.

It said the buying momentum, if it continues, was likely to spur more buying, hence leading the index to retest the key resistance at 1,525 and the record level of 1,531.99 soon.

'However, we place much concerns on the regional markets sentiment that we think could still dampen the local trading behavior should the regional markets fall rapidly in the near term,' it said in a note on Thursday.

The research house said that chart wise, the index will turn swiftly negative again if it breaches the 10-day and 40-day Simple Moving Averages near 1,496 and 1,499.

It also said the selling momentum would accelerate if the FBM KLCI eases to below the recent low of 1,474.

'As a result, we maintain that long-term investors should capitalise on the recent gains to 'sell into strength' on their medium- to longer-term holdings.

'We reckon the market sentiment will turn positive only if it moves into a higher trading zone from 1,531.99,' it said.

On Bursa Malaysia, Dutch Lady was the top gainer at mid-morning and was up 28 sen to RM18.78. Paramount Corp added 27 sen to RM5.05 after it declared a special dividend of 40 sen per share.

PetDag rose 26 sen to RM11.76, Batu Kawan added 18 sen to RM16.98, Tradewinds up 17 sen to RM5.32, MTD Capital and LPI Capital added 14 sen each to RM8.05 and RM12.28, Top Glove and Pos Malaysia were up 12 sen each to RM5.50 and RM3.24, Tasek up 11 sen to RM7.70, PetGas added six sen to RM11.36, Maybank rose three sen to RM8.43 and Genting gained two sen to RM10.82.

Petronas Chemicals was the most actively traded counter with 32.7 million shares done. The stock gained 10 sen to RM5.51. Other actives included DRB-Hicom, Petra, Careplus and Karambunai.


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