Wednesday, March 9, 2011

FBM KLCI advances in early trade

KUALA LUMPUR: The FBM KLCI advanced in early trade on Wednesday, March 9 in line with the gains at the key regional markets following the slightly firmer overnight close at Wall Street.

Oil prices fell on Wednesday as OPEC considered raising production, pushing up Asian stocks although investors remained on edge due to worries that unrest in the Middle East could spread to other oil exporting nations, according to Reuters.

Elsewhere, Japan's core machinery orders rose more than expected and marked their second straight month of gains in January, suggesting that rising exports and robust profits will gradually nudge companies into increasing spending on plant and equipment, according to Reuters.

The FBM KLCI was up 4.31 points to 1,521.97 at mid-morning. Gainers led losers by 316 to 107, while 176 counters traded unchanged. Volume was 333.75 million shares valued at RM354.79 million.

At the regional markets, Japan's Nikkei 225 rose 1.03% to 10,633.46, Hong Kong's Hang Seng Index was up 0.81% to 23,903.85, South Korea's Kospi gained 0.65% to 2,009.27, Taiwan's Taiex added 0.38% to 8,781.29, Singapore's Straits Times Index gained 0.15% to 3,108.64 and the Shanghai Composite Index edged up 0.11% to 3,003.19.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on March 9 said he expects the index to remain in a minor rebound mode in the short term and will be bearish in the medium term.

'We suggest that clients liquidate on rallies and remain more in cash.

'Due to the DJIA's firm tone last night, we will see the FBM KLCI gap up initially today, with subsequent profit-taking activities after that. As the market re-visited 1,474 recently, the FBM KLCI index traced out a nasty Head & Shoulders topping pattern,' he said.

Any low volume rebound moves will allow investors to sell on rallies, he said.

Among the major gainers in early trade, Panasonic rose 28 sen to RM19.96, Petronas Chemicals 21 sen to RM6.66, GAB 16 sen to RM9.80, while F&N, IJM, DiGi, Mudajaya and Paramount added 12 sen each to RM15.90, RM6.19, RM27.80, RM4.82 and RM5.17 respectively.

Heveaboard added 16 sen to RM1.18 after it received an offer from Dongwha Malaysia Holdings Sdn Bhd to acquire its assets related to the manufacturing of particleboard.

Decliners included MTD Capital, Mah Sing, Petronas Dagangan, Keck Seng, Knusford and Jerneh.

HWGB was the most actively traded counter with 22.58 million shares done. The stock added one sen to 59 sen. Other actives included Karambunai, Berjaya Food, Tanco, Petronas Chemicals, SAAG and Olympia.

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