Tuesday, March 29, 2011

FBM KLCI edges up in cautious trade

KUALA LUMPUR; The FBM KLCI rose amidst cautious trade at mid-morning, in line with the generally tepid investor sentiment across key regional markets following the weaker overnight close at Wall Street.

Worries over the quake-hit nuclear plant and its impact on corporate earnings knocked Japanese shares lower on Tuesday, while the euro steadied after comments from the region's central bank chief bolstered the view of an interest rate hike, according to Reuters.

Plutonium found in soil at the Fukushima nuclear plant added to anxiety over Japan's protracted fight to contain the world's worst atomic crisis in 25 years, it said.

The FBM KLCI edged up 1.60 points to 1,515.85 at mid-morning.

Gainers led losers by 249 to 169, while 180 counters traded unchanged. Volume was 351.19 million shares valued at RM297.23 million.

At the regional markets, Japan's Nikkei 225 fell 1.47% to 9,338.98, Singapore's Straits Times Index lost 0.34% to 3,047.11, Hong Kong's Hang Seng Index shed 0.17% to 23,028.85 and the Shanghai Composite Index slipped 0.08% to 2,981.60.

Meanwhile, South Korea's Kospi gained 0.29% to 2,062.41 and Taiwan's Taiex added 0.21% to 8,571.28.

BIMB Securities Research in a note March 29 said Wall Street closed lower yesterday ahead of several crucial economic releases this week.

Investors were also concern on the situation in Libya where the rebel had gained ground against Muammar Ghadafi especially after the international air strike recently, it said.

It said Wall Street closed lower despite some encouraging economic statistics which showed that the American spending rose the most in the last 4 months although admittedly the rising in spending was due to the jump in gas prices.

Elsewhere, The National Association of Realtors said that more American signed contracts to buy new home in February, it said.

'Nevertheless, the crucial economic data to be released this week namely the jobs market report and manufacturing survey appeared to influence traders.

'Most stayed sideline ahead of these releases. Given that, expect the local and regional market to mirror the Wall Street momentum today,' it said.

On Bursa Malaysia, timber-related stocks continued to rally on expectations of a rise in demand from Japan for reCONSTRUCTION [] works, as Malaysia is the largest exporter to that country.

Subur Tiasa jumped 45 sen to RM3.89, Jaya Tiasa 25 sen to RM6.41, Ta Ann 22 sen to RM6.71, WTK 13 sen to RM1.97 and Leweko 1.5 sen to 22.5 sen.

Other gainers included Petronas Chemicals that rose 15 sen to RM7.10, GAB 14 sen to RM9.70, Hua Yang 11 sen to RM1.49, Coastal Contracts eight sen to RM2.91 and HELP seven sen to RM2.69.

Actives included Perisai, Leweko, Digistar, JCY, Iris and Mieco.

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