Thursday, March 24, 2011

Blue chips struggle, broader market firmer

KUALA LUMPUR: ''Blue chips struggled to return to positive territory at mid-day on Thursday, March 24 aided by some mild buying of index-linked stocks like AMMB, Petronas Chemicals and MISC but the broader market displayed more resilience.

The FBM KLCI managed to eke out marginal gains after spending most of the morning in the red. The recovery was in line with key regional markets as Japan's Nikkei 225 pared down its losses as some factories started operations again after the earthquake a fortnight ago forced them to shut down.

At 12.30pm, the FBM KLCI had edged up 0.03% or 0.48 point to 1,512.45 at the mid-day break, lifted by gains including at AMMB, Gamuda, Petronas Chemicals and MISC.

Gainers led losers by 339 to 270, while 285 counters traded unchanged. Volume was 561.3 million shares valued at RM711.97 million.

The ringgit strengthened 0.03% to 3.0285 versus the US dollar; crude palm oil futures for the third month delivery fell RM126 per tonne to RM3,180, crude oil shed 34 cents per barrel top US$105.41 while gold added US$1.18 per troy ounce to US$1,438.57.

Nikkei 225 +0.19% 9,467.27 Hang Seng Index +0.76% 22,998.79 Shanghai Composite +0.09% 2,951.25 Taiwan's Taiex +0.49% 8,587.13 South Korea's Kospi +0.98% 2,031.91 Singapore's Straits Times Index +0.85% 3,047.87 ''

Japanese shares had slipped earlier on Thursday, with short-covering after a steep fall last week running out of steam as nerve-racking radiation leaks from a quake-stricken nuclear plant impeded any optimism on the economy, according to Reuters.

While the near-term market outlook is seen depending on whether Japan can safely stabilise the crippled plant, in the longer run, the market could fall under the weight of the damage from a massive earthquake this month and likely power shortages, it said.

Among the gainers on Bursa Malaysia, AMMB and Gamuda rose five sen each to RM6.35 and RM3.78, Petronas Chemicals and MISC four sen each to RM6.77 and RM7.79, while Genting Malaysia was up three sen to RM3.51.

BHIC rose 20 sen to RM3.99. HwangDBS Vickers Research has initiated coverage on the stock with a Buy call and target price RM6.55.

Meanwhile, BOUSTEAD HOLDINGS BHD [] shares rose 12 sen to RM5.64. Other gainers included Esso, Ewein, Hing Yap, GAB, Panasonic and Cypark.

Lion Corp was the most actively traded counter with 19.1 million shares done. The stock added three sen to 33.5 sen. Other actives included Mieco, ManagePay Systems, Perisai, Silver Birdm Leweko and Sinotop.

Tahps was the top loser this morning and fell 20 sen to RM4.60. Other decliners included Perduren, Parskon, PPB, Sarawak PLANTATION []s, Affin, Tenaga and Mercury.

Hai-O fell eight sen to RM2.19 after its earnings fell 65% to RM6.34 million for the third quarter ended Jan 31, 2011 from RM18 million a year ago as revenue shrank following lower sales from its multi-level marketing (MLM) division.

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