Monday, January 17, 2011

FBM KLCI at fresh record high, Benalec in focus

KUALA LUMPUR: Blue chips started off the new week, Monday on Jan 17 on a firm note, with the FBM KLCI advancing to a fresh record high of 1,574 while Benalec was in focus when it made its debut.

At 10am, the KLCI was up 1.6 points to 1,571.55 on mild profit taking as the market settled in during the first hour of trade, weighed down by marginal losses in Genting and Hong Leong Bank. Turnover was 435.7 million shares valued at RM325.06 million. There were 332 gainers, 194 losers and 242 stocks unchanged.

Japan's Nikkei average bounced back towards eight-month highs on Monday after stronger-than-expected earnings from JPMorgan helped financial stocks, with higher oil prices also lifting energy-related shares.

The benchmark Nikkei was up 0.3% or 35.67 points at 10,535.11. On Friday it fell 0.9% after a surprisingly weak settlement of options for January.

Meanwhile, Hwang DBS Vickers Research said that while the medium-term market outlook remained positive, it reckoned the Malaysian bourse may extend its consolidation pattern on Monday due to profit-taking pressures.

'Its benchmark FBM KLCI will probably swing sideways with a marginal downward performance. Immediate support and resistance levels are currently seen at 1,550 and 1,585, respectively,' it said.

HDBSVR said against a backdrop of mixed market breadth, selected counters could still attract strong investors' interest ahead. It cited Kumpulan Europlus and its parent company IJM Corporation, following a report that the West Coast Expressway (in which Kumpulan Europlus has a controlling interest) would proceed pending an approval from the Cabinet.

It added SP Setia would be focus on news the property developer has secured the rights to develop a large tract of prime land located in Bangsar, Kuala Lumpur.

Benalec, a marine CONSTRUCTION [] company, made a strong debut, up 31 sen to RM1.31. There were 56.29 million shares done.

Tradewinds was the top gainer, rising 32 sen to RM7.96 while related company Bernas added 18 sen to RM3.07.

DiGi rose 22 sen to RM25.30 with1,100 shares'' done.'' OSK Research is maintaining its forecast and NEUTRAL recommendation on DiGi.Com pending the release of its 4QFY10 results at month end.

'We think there is a likelihood that Digi may declare a special dividend for the final quarter, adding to RM1.20 DPS/share paid to-date as part of its progressive capital management plans (internal target to raise net debt/equity to 0.5-0.8x from 0.2x over the mid to longer term),' said OSK Research.

SPB added 23 sen to RM3.93, APM 10 sen to RM5.69, Esso 15 sen to RM3.22 and SapuraCrest 13 sen to RM3.63.

SAAG was the most active with 69.26 million shares done. It was up 0.5 sen to 13 sen.

Among the decliners were DFZ, down 13 sen to RM3.38. GAB 12 sen to RM10.80 while Dutch Lady shed eight sen to RM17.52.

Glove makers, Supermax shed seven sen to RM4,55 and Top Glove six sen to RM5.18.

Genting lost eight sen to RM11.80 and Hong Leong Bank five sen to RM9.41


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