Friday, December 10, 2010

Investors sell into strength, DRB-Hicom in focus

KUALA LUMPUR: The FBM KLCI succumbed to some mild profit taking in line with the dip at most key regional markets after the recent rally on Friday, Dec 10, as local investors appeared to have adopted a 'sell into strength' strategy.

The FBM KLCI shed 0.26% or 4.02 points to 1,517.27 at the mid-day break, weighed by losses at key blue chips including Tenaga, Petronas Dagangan, PPB, BAT, MISC, RHB Capital, Hong Leong Bank, DiGi and KLK.

Gainers trailed losers by 263 to 384 while 274 counters traded unchanged. Volume was 759.8 million shares valued at RM1.12 billion.

The ringgit gained 0.11% to 3.1355 versus the US dollar; crude palm oil for the third month delivery fell RM5 per tonne RM3,545, oil added eight cents to US$88.45 and gold rose US$2.60 per troy ounce to US$1,389.70.

Hang Seng Index -0.68% 23,014.04 Nikkei 225 -0.49% 10,235.73 Taiwan's Taiex -0.72% 8,690.40 Straits Times Index -0.75% 3,186.21 Kospi -0.29% 1,983.17 Shanghai Composite Index +0.14% 2,814.89 ''

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Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Dec 10 said that due to the steady US markets last night, the FBM KLCI in a range trading mode today too, with some buying activities that may see later pre-weekend profit-taking.

'Global market trends may have become somewhat volatile recently but we have turned a corner at the 1,474-low.

'The FBM KLCI remains trapped between the low of 1,474 and the high of 1,531 for now, with good upside potential,' he said.

BAT fell RM1.28 to RM46.02, PetDag fell 30 sen to RM11.60, PPB down 26 sen to RM17.12, Nestle and Kulim fell 20 sen each to RM43.32 and RM12.28.

MISC and RHB Capital shed 15 sen each to RM8.30 and RM8.32, Hong Leong Bank and DiGi down 14 sen each to RM9.22 and RM24.40, while Tenaga and KLK lost 12 sen each to RM8.67 and RM21.76.

Landmarks rose 24 sen to RM1.61 after CIMB Research said the property company was trading a hefty discount of more than 70% to its estimated RNAV of RM4.18.

DRB-Hicom shares and warrants rose in active trade after HwangDBS Vickers Research initiated coverage on the stock with a buy call and target price RM3.55.

DRB-Hicom jumped 18 sen to RM1.83 with 49.9 million shares trade while its warrants added seven sen to 44.5 sen with 54.7 million units done.

Other gainers included Glenealy, MPI, AMMB and Petronas Chemicals.


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