Tuesday, December 14, 2010

Profit taking erodes recent gains, plantations steady

KUALA LUMPUR: The FBM KLCI remained in negative territory at the mid-day break on Tuesday, Dec 14 as some mild profit taking erased part of the gains made by key blue chips during the recent rally on Bursa Malaysia.

At Bursa Malaysia, PLANTATION []-related stocks advanced as crude palm oil futures prices stayed firmly above the RM3,700- level.

Regional markets were mixed as investors remained cautious despite some semblance of optimism that China would avoid moves to curb inflation that could inhibit its strong economic growth and blunt its voracious demand for raw materials.

Metals prices rose after Chinese data released at the weekend showed buoyant industrial production and fixed asset investor, pushing copper to record highs and buoying shares of miners and other resource-related companies, according to Reuters.

At Bursa Malaysia, the FM KLCI shed 0.13% or 2.02 points to 1,507.77 and year-to-date, the FBM KLCI is up 18.45%. The 30-stock index was weighed by losses including at BAT, DiGi, Genting, Maybank, MISC and Petronas Dagangan.

The broader market reflected the cautious mood with gainers trailing losers 258 to 364, while 312 counters traded unchanged. Volume was 620.69 million shares valued at RM713.79 million

At the regional markets, Hong Kong's Hang Seng Index added 0.20% to 23,363.20, South Korea's Kospi was up 0.40% to 2,004.52, Taiwan's Taiex edged up 0.01% to 8,737.17 while Singapore's Straits Times Index shed 0.11% to 3,178.93 and the Shanghai Composite Index gave up 0.20% to 2,917.15.

The ringgit strengthened 0.34% to 3.1295 versus the US dollar, crude palm oil for the third month delivery rose RM24 per tonne to RM3,746 , gold jumped US$8.57 per troy ounce to US$1,402.75 while crude oil slipped 40 cents per barrel to US$88.21.

BAT fell 52 sen to RM46.02, DiGi and PetGas lost 10 sen each to RM25 and RM11.80, MISC fell four sen to RM8.28 while Genting and Maybank shed two sen each to RM11.04 and RM8.46.

KYM fell 17 sen to RM2.83 and KYM-WA shed 15 sen to RM2.19 as investors could have been disappointed over the RM585,911 contract from Vale Malaysia to build a small jetty.

However, the jetty is part of the infrastructure for the massive proposed iron ore distribution centre and pellet plant at Teluk Rubiah, Perak.

TSM gave up most of Monday's gains, down 14 sen to RM3.98, MBM Resources fell 13 sen to RM3.31, Khind down 12 sen to RM1.33 while Dutch Lady was down 10 sen to RM17.80.

Gainers included plantations, with KL Kepong rising 14 sen to RM21.70, Sungei Bagan 11sen to Rm3.33, Sarawak Oil Palms 10 sen to Rm4.03 and TH Plantations nine sen to RM1.70.

Land & General was the most active with 33.65 million shares done. The stock added two sen to 49 sen.

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