Monday, January 10, 2011

Asian markets retreat, banks weigh on KLCI

KUALA LUMPUR: Asian markets retreated on Monday, Jan 10, with Indonesia's benchmark index down more than 4% on concerns about surging inflationary pressure, while at Bursa Malaysia, banking stocks weighed.

At 12.30pm, the FBM KLCI was down 5.34 points or 0.33% to 1,566.87. Turnover was 1.14 billion shares valued at RM1.28 billion. Advancers edged decliners 396 to 378 while 283 stocks were unchanged.

Jakarta's Composite Index fell 145 points or 4.02% to 3,485.52, Thailand's SET Index shed 1.29% to 1,032.12 and Singapore's Straits Times Index 0.11% lower at 3,257.86.

Shanghai's Composite Index fell 0.41% to 2,827.14, Hong Kong's Hang Seng Index 0.13% lower at 23,655.15 and South Korea's KOSPI 0.5% at 2,075.73.

Light crude oil surged US$1.05 to US$89.08, off the high of nearly US$90 after'' after a leak shut an Alaskan pipeline that carries 12% of US crude output. The Trans Alaska Pipeline was shut down on Saturday after a leak at the start of the pipeline in Prudhoe Bay, forcing oil companies to cut output to 5% of their daily average of 630,000 barrels.

Crude palm oiil futures rose RM6 to RM3,741 while gold jumped US$4.08 to US$1,373.65 per ounce. The ringgit was unchanged at 3.0710 to the US dollar.

At Bursa Malaysia, stocks fell as the market paused after five straight days of gains. Among the banks, Public Bank fell 12 sen to RM13.42, CIMB eight sen to RM8.85, AMMB five sen to RM7.02 and Maybank unchanged at RM9.

DiGi was the top loser, down 14 sen to RM24.90. Among PLANTATION [] related stocks, Kulim and PPB shed 10 sen each to RM17.60 and RM13.48.

Guan Chong fell eight sen to RM2.41 after it proposed to raise RM120 million from its corporate exercise based on the expected exercise price of RM2 for the 60 million free warrants.

Hap Seng Consolidated fell seven sen to RM7.29 after proposing to raise nearly RM1.5 billion from a share placement and rights issue.

SAAG was the most active with 99 million shares done, up 1.5 sen to 12 sen. It announced during the midday break that its subsidiary has secured a US$78 million (RM239.54 million) contract from Mrails Tram (Melaka) Sdn Bhd to design and build 40 km of tramway in Melaka.

Mitrajaya climbed 21 sen to RM1.80. CIMB Research said'' among its screen of small-cap contractors, Mitrajaya'' remains at compelling CY11-12 price to earnings (P/Es) of only 3-3.4 times valuations despite its share price surge over the past week.

"The stock is also trading below its NTA of RM2.26.'' There is more than 100% share price upside to our RNAV estimate of RM3.30/share, 52% of which comes from its landbank, with the jewel being the 100 acres in South Africa," it said.

Ekovest added 20 sen to RM3.16 and MRCB 12 sen to RM2.34 on expectations of securing a RM8 billion Klang River project.




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