KUALA LUMPUR: The FBM KLCI snapped its losing streak since last July in early trade on Thursday, Jan 27 lifted by gains at index-linked PLANTATION [] stocks and key blue chips.
At mid-morning, the 30-stock index was up 9.07 points to 1,529.07, boosted by gains including at KLK, DiGi, CIMB and Sime Darby.
Gainers outpaced losers by 372 to 78 as investors picked up stocks battered over the last six trading days, while 179 counters traded unchanged. Volume was 290.57 million shares valued at RM301.25 million.
Regional markets were mixed despite the firmer overnight close at Wall Street.
Hong Kong stocks opened lower on Thursday, resuming their recent weak trend, as mainland banks and real estate developers were hit by another round of property curbs in China, according to Reuters. The Shanghai Composite Index lost 0.92% to 2,683.83, Singapore's Straits Times Index fell 0.32% to 3,210.63, South Korea's Kospi slipped 0.03% to 2,109.80 and Hong Kong's Hang Seng Index opened 0.3% lower at 23,784.56.
Meanwhile, Japan's Nikkei 225 was up 0.26% to 10,429.42 and Taiwan's Taiex gained 0.58% to 9,108.50.
RHB Research Institute Sdn Bhd in a note Jan 27 said the equity market had already shown some hare-like signs even though the new Lunar Year had not yet begun.
It said the FBM KLCI rose by 3.7% (+55.58 points) to an all-time high of 1,574.49 over the first 11 trading days of the calendar year, but pulled back even quicker.
'However, estimated market velocity of 38-61% during the recent pullback is still higher than the 2010 average of 35%.
'We believe the equity market will likely remain volatile, which is essentially good for traders,' it said.
The research house said it continued to expect more M&As this year, especially in the oil & gas and property sectors, as the premium valuations for sector leaders would facilitate the acquisitions of smaller players via the issue of shares.
Dialog, Kencana and SapuraCrest in oil & gas and SP Setia in property were already trading at premium valuations, it said.
'We also note that hares are very resilient and likewise for the equity market given overall valuations are not stretched and normalised EPS for the FBM KLCI stocks is expected to grow at 16.3% for 2011.
'We believe the recent outperformers will remain under pressure until risk-reward ratios become attractive again, either from lower share prices or catch up in earnings. In any case, we believe the current pullback is an opportunity to trade into fundamentally-attractive stocks,' it said.
Among the gainers in early trade, KLK rose 34 sen to RM21.24, Hap Seng 17 sen to RM6.47, Kulim 16 sen to RM13, Sime Darby nine sen to RM9.29 amd IOI Corp three sen to RM5.79.
DiGi was up 32 sen to RM25.43, S P Setia 17 sen to RM6.43, PacificMas 16 sen to RM4.90, SapuraCrest 14 sen to RM3.57, APM Automotive 13 sen to RM5.60, CIMB eight sen to RM8.42, Axiata six sen to RM4.77 and Petronas Chemicals nine sen to RM6.05.
Decliners in early trade included Dutch Lady, Amway, Maybank and Perak Corp.
Daya Materials was the most actively traded counter with 14.9 million shares done. The stock added two sen to 26 sen. Other actives included Ho Wah Genting, Hubline, Kencana and Nam Fatt.
At mid-morning, the 30-stock index was up 9.07 points to 1,529.07, boosted by gains including at KLK, DiGi, CIMB and Sime Darby.
Gainers outpaced losers by 372 to 78 as investors picked up stocks battered over the last six trading days, while 179 counters traded unchanged. Volume was 290.57 million shares valued at RM301.25 million.
Regional markets were mixed despite the firmer overnight close at Wall Street.
Hong Kong stocks opened lower on Thursday, resuming their recent weak trend, as mainland banks and real estate developers were hit by another round of property curbs in China, according to Reuters. The Shanghai Composite Index lost 0.92% to 2,683.83, Singapore's Straits Times Index fell 0.32% to 3,210.63, South Korea's Kospi slipped 0.03% to 2,109.80 and Hong Kong's Hang Seng Index opened 0.3% lower at 23,784.56.
Meanwhile, Japan's Nikkei 225 was up 0.26% to 10,429.42 and Taiwan's Taiex gained 0.58% to 9,108.50.
RHB Research Institute Sdn Bhd in a note Jan 27 said the equity market had already shown some hare-like signs even though the new Lunar Year had not yet begun.
It said the FBM KLCI rose by 3.7% (+55.58 points) to an all-time high of 1,574.49 over the first 11 trading days of the calendar year, but pulled back even quicker.
'However, estimated market velocity of 38-61% during the recent pullback is still higher than the 2010 average of 35%.
'We believe the equity market will likely remain volatile, which is essentially good for traders,' it said.
The research house said it continued to expect more M&As this year, especially in the oil & gas and property sectors, as the premium valuations for sector leaders would facilitate the acquisitions of smaller players via the issue of shares.
Dialog, Kencana and SapuraCrest in oil & gas and SP Setia in property were already trading at premium valuations, it said.
'We also note that hares are very resilient and likewise for the equity market given overall valuations are not stretched and normalised EPS for the FBM KLCI stocks is expected to grow at 16.3% for 2011.
'We believe the recent outperformers will remain under pressure until risk-reward ratios become attractive again, either from lower share prices or catch up in earnings. In any case, we believe the current pullback is an opportunity to trade into fundamentally-attractive stocks,' it said.
Among the gainers in early trade, KLK rose 34 sen to RM21.24, Hap Seng 17 sen to RM6.47, Kulim 16 sen to RM13, Sime Darby nine sen to RM9.29 amd IOI Corp three sen to RM5.79.
DiGi was up 32 sen to RM25.43, S P Setia 17 sen to RM6.43, PacificMas 16 sen to RM4.90, SapuraCrest 14 sen to RM3.57, APM Automotive 13 sen to RM5.60, CIMB eight sen to RM8.42, Axiata six sen to RM4.77 and Petronas Chemicals nine sen to RM6.05.
Decliners in early trade included Dutch Lady, Amway, Maybank and Perak Corp.
Daya Materials was the most actively traded counter with 14.9 million shares done. The stock added two sen to 26 sen. Other actives included Ho Wah Genting, Hubline, Kencana and Nam Fatt.
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