Tuesday, January 4, 2011

FBM KLCI extends gains at mid-morning

KUALA LUMPUR: The FBM KLCI extended its positive run into 2011 on Tuesday, Jan 4, in line with the gains at key regional markets on the back of the firmer overnight close at Wall Street as well as encouraging data from the US.

Stocks across the region were also given a boost from the 'January effect' when fund managers were no longer distracted by year-end window dressing and instead focused on stocks they found attractive, according to Reuters.

On Bursa Malaysia, the 30-stock FBM KLCI surged 14.28 points to 1,547.70 at 10am, lifted by gains including at Sime Darby, DiGi, BAT and IOI Corp.

Gainers led losers by 387 to 152, while 233 counters traded unchanged. Volume was 385.85 million shares valued at RM394.12 million.

At the regional markets, Japan's Nikkei 225 jumped 1.42% to 10,373.85, Singapore's Straits Times Index was up 0.57% to 3,254.20, the Shanghai Composite Index added 0.45% to 2,820.75, South Korea's Kospi Index rose 0.32% to 2,076.68, Taiwan's Taiex was flat at 9,025.45 while Hong Kong's Hang Seng Index opened 0.2% higher at 23,490.07.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Jan 4 said the FBM KLCI's resistance area of 1,535 may cap market gains, whilst its firm support areas were located at 1,518 and 1,533.

Due to the firm US markets last night, the FBM KLCI could be in a solid trading mode today too, with buying activities that may see some minor profit-taking activities, he said.

'The FBM KLCI created a new all-time peak at 1,531.99 on Nov 10. A temporary correction low had been formed at

1,474.02 on Nov 29, 2010.

'With the firm price action yesterday, the FBM KLCI has broken above 1.531.99 and is poised to surge into uncharted territory,' said Lee.

Among the gainers on Bursa Malaysia, Sime Darby advanced 50 sen to RM9.45, Dutch Lady rose 40 sen to RM17.90, DiGi up 34 sen to RM25.42, BAT and IOI Corp added 32 sen each to RM46.12 and RM6.15, LPI Capital advanced 28 sen to RM13.90, Cycle & Carriage up 21 sen to RM4.70, Kulim rose 16 sen to RM12.64 while Allianz was up 15 sen to RM5.

The decliners in early trade included P.I.E that fell 11 sen to RM3.96, MAHB down 10 sen to RM6.10, Advanced Packaging lost nine sen to RM1.31, Panasonic down eight sen to RM18.60, Apollo and MISC fell five sen each to RM3 and RM8.47, while Maxbiz lost 4.5 sen to 15.5 sen.

Among the actives in early trade were DRB-Hicom shares and warrants, Petra Perdana shares and warrants, Daya Materials, Talam, Mulpha and Maxbiz.

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