Wednesday, March 9, 2011

KLCI at 1 ½ week high, boost from O&G stocks

KUALA LUMPUR: Blue chips rose to their highest in 2 '' weeks on Wednesday, March 9, as sentiment was underpinned by the oil and gas-related companies and firm economic outlook despite some inflationary worries.

Prime Minister Datuk Seri Najib Razak's announcement of nine more entry point projects (EPPs) worth over RM2 billion bolstered sentiment. This brought the total to date to 60 projects under the 46 EPPs. These projects will involve RM95 billion in investments and increase the gross national income by RM137 billion.

OSK Research said Pemandu was doing a good job in keeping the ETP (Economic Transformation Programme) at the forefront of investors' minds, which will help keep market sentiment from turning unduly negative despite global uncertainties.

'Moving forward, we welcome updates on how previously announced EPPs are progressing. We maintain our Overweight call on the Malaysian market, with our 1,680 KLCI year-end target intact,' it said.

The FBM KLCI closed 6.03 points higher at 1,523.69, which was the highest since Feb 21 Turnover was 1.5 billion shares valued at RM2.24 billion. Advancers beat decliners 575 to 211 while 268 stocks were unchanged.

Light crude oil was unchanged at US$105.02 while crude palm oil futures rose RM4 to RM3,558.

Petronas Chemicals rose 25 sen to RM6.70 with50 million shares done after it was upgraded by local and foreign research houses including Credit Suisse and JP Morgan.

MMHE added 22 sen to RM6.66, KNM 20 sen to RM2.85, Dialog and SapuraCrest 19 sen to RM3.67.

Mudajaya rose 15 sen to RM4.85 after it announced a bonus issue while research houses reaffirmed their positive outlook for the CONSTRUCTION [] company.

AMMB added 16 sen to RM6.46. Prime Minister Datuk Seri Najib Razak said applications to increase foreign shareholding for commercial banks would be considered on an individual "merit basis".

Najib'' said this as a follow-up to his statement last week in Australia that Malaysia was "open" to allowing Australia & New Zealand (ANZ) Banking Group to raise its 24% strategic shareholding in local lender AMMB HOLDINGS BHD [] to 49%.

The decliners were MTD, down 22 sen to RM11, which was the revised takeover offer price. KL Kepong lost 14 sen to RM20.86 while cigarette manufacturers JTI and BAT fell 14 sen each to RM6.56 and RM47.64.

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