Wednesday, March 16, 2011

Asian markets rebound on bargain hunting

KUALA LUMPUR: Asian markets rebounded in early trade on Wednesday, March 16 as Japan's Nikkei surged 6% as punters lapped up battered stocks after the two-day rout in the aftermath of last Friday's deadly quake and subsequent nuclear crisis.

Other Asian stock markets also opened higher, but analysts warned that news of another fire at the Fukushima Daiichi nuclear plant in the morning and a quake last night in the Shizuoka area near Tokyo would keep investors on edge, according to Reuters.

Overnight, US stocks closed down but off lows as a more upbeat view from the Federal Reserve helped limit Japan-related losses. The Fed stuck with its ultra-loose monetary policy but said the economy was gaining traction, it said.

The FBM KLCI pared down some of its gains at mid-morning and was up 1.31 points to 1,485.45. The index had earlier risen to 1,491.08.

Gainers led losers by 224 to 160, while 216 counters traded unchanged. Volume was 225.87 million shares valued at RM203.4 million.

At the regional markets, Japan's Nikkei 225 rose 4.37% to 8,981.14, Hong Kong's Hang Seng Index edged up 0.06% to 22,691.72, the Shanghai Composite Index added 0.29% to 2,904.53, Taiwan's Taiex was up 0.53% to 8,278.60, South Korea's Kospi jumped 1.84% to 1,959.28 and Singapores' Straits Times Index gained 0.81% to 2,969.82.

BIMB Securities Research in a note March 16 said investors were particularly concerned over the impact of the massive earthquake to the Japanese economy, which set to look negative as the country was the world's third largest economy.

'A weakening Japan economic prospect hammered the investors' sentiment (yesterday). Added to that, investors were still fretted over the situation in the ''Middle East where Saudi troops have moved into Bahrain while Libya has halted its oil production due to the rising unrest.

'With no sign of receding, especially the situation in Japan and Middle East, expect the selling momentum in the local and regional market to continue today,' it said.

Among the gainers on Bursa Malaysia, Cepco added 38 sen to RM2.25, DiGi was up 28 sen to RM27.50, GAB 18 sen to RM9.75, Lysaght and Shell 12 sen each to RM2.03 and RM10.80, Hartalega 10 sen to RM5.60, HPI nine sen to RM2.89 and Petronas Dagangan eight sen to RM14.40.

Meanwhile, Ta Ann added nine sen to RM4.96. AmResearch has upgraded the stock to a Buy and raised its target price to RM6.30 from RM5.61.

ManagePay Systems was the most actively trade counter with 25.9 million shares done. The stock fell 1.5 sen to 20.5 sen. Other actives included IRCB, SAAG, Berjaya Retail, HWGB and DRB-Hicom.

Losers included Asdion, HELP, PPB, Aeon, BAT, SapuraCrest, GD Express, MAHB and KYM.

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