Monday, January 10, 2011

Market pauses after week-long rally

KUALA LUMPUR: The local stock market paused in early trade on Monday, Jan 10 on mild profit taking of banking stocks after a week-long rally which pushed the FBM KLCI to fresh record highs each day in rising volume.

At 10am, the FBM KLCI shed 0.87 of a point to 1,571.34. Turnover was 559.31 million shares valued ar RM462.13 million. Turnover was 559.31 million shares valued at RM462.13 million.

Hwang DBS Vickers Research said it expected the FBM KLCI might see some profit-taking after 5 consecutive days of uptrend (up 53.3 points or 3.5%).

'Even then, we do not think it will breach below its immediate support level at 1,550 in near term,' it said.

Over in the US, key equity indices ended lower by 0.2% mainly led by profit-taking activities and weaker-than-expected jobs data.

Hwang DBS Vickers Research said several news flows which might lead to stock action on Monday were PLUS Expressways, which had set a deadline at 5pm for takeover bids; (b) HAP SENG CONSOLIDATED BHD [] plans to undertake private placements and rights issue to raise up to RM1.5 billion for its future expansion; and (c) Dayang Enterprise which is slated to have EGM today to discuss on capital raising exercises in anticipation of more jobs this year.

Among the banks, AMMB fell seven sen to RM7, CIMB six sen to RM8.87 and RHB Cap five sen to RM8.55.

BAT was the top loser, down RM1 to RM45.50 with just 100 shares done. Cocoland lost 12 sen to RM2.66 and PPB 10 sen to RMRm17.60.

SAAG was the most active with 53.04 million shares done, rising one sen to 11.5 sen.

Ekovest rose 19 sen to RM3.15 and MRCB 12 sen to RM2.34 on expectations the joint venture was close to securing a RM8 billion Klang River project.

PLUS added 13 sen to RM4.74. RHB Research Institute said with the possibility of a bidding war and further news flow expected, it maintained its Trading Buy call on PLUS with an unchanged fair value of RM5.20.


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