Monday, March 21, 2011

Regional markets advance, limited gains for FBM KLCI

KUALA LUMPUR: ''The FBM KLCI shrugged of its losses from early trade and clawed into positive territory by mid-morning on Monday, March 21, in line with the gains at the key regional markets.

However, trading at the regional markets remained cautious as external factors including rising oil prices amid escalating tensions in the Middle East kept investors edgy.

Oil prices jumped more than US$2 on Monday after Western forces struck targets in Libya, leaving stock markets shaky after suffering heavy losses lost week, according to Reuters.

Investors also remained cautious over the global economic impact of a massive earthquake and tsunami which devastated parts of Japan earlier this month, leading to radiation leaks at some nuclear power plants, it said.

Workers are spraying water to cool overheating reactors at the Fukushima complex north of Tokyo but have not yet been able to restore power to large water pumps at the site, said Reuters.

The FBM KLCI was up 1 point to 1,504.89 at mid-morning, lifted by gains including at BAT and DiGi.

Gainers led losers by 272 to 136, while 174 counters traded unchanged. Volume was 157.4 million shares valued at RM169.47 million.

At the regional markets, Hong Kong's Hang Seng Index added 0.87% to 22,493.31, the Shanghai Composite Index edged up 0.14% to 2,911.00, Taiwan's Taiex rose 1.025 to 8,480.23, South Korea's Kospi was up 0.80% to 1,997.04 and Singapore's Straits Times Index gained 0.62% to 2,953.97.

Meanwhile, Japan's stock markets were closed for a national holiday.

BIMB Securities Research said Wall Street closed in positive momentum last Friday driven by the decision of the world's seventh largest country to bring down the Yen .

The US bank's decision to pay higher dividend also helped market sentiment, it said.

'Nevertheless, given the situation in Libya where the United Nation has launched air military strike on the leader, we don't expect the equity market to recover too fast too soon as the situation there remains uncertain.

'Therefore, expect the local market to trade in positive momentum today albeit at mild upward trajectory,' it said.

BIMB Securities said its year-end target for the FBM KLCI was 1,600 points.

BAT was the top gainer at mid-morning and was up 58 sen to RM46.10; Panasonic added 44 sen to RM20.50, DiGi 22 sen to RM27.68 and Litrak 12 sen to RM3.42.

Among the Sarawak stocks, Naim rose 17 sen to RM3.25, Cahya Mata Sarawak 13 sen to RM2.72 and Hock Seng Lee added 10 sen to RM1.87.

Timber-related stocks also continued rising, with Ta Ann up 18 sen to RM5.91, Subur Tiasa 17 sen to RM2.96 and WTK six sen to RM1.64.

Among the decliners, Kluang fell 14 sen to RM2.52, DKLS 10 sen to RM1, APM Automotive and IOI Corp nine sen each to RM4.90 and RM5.69, Tafi seven sen to 31 sen, Lysaght and RHB Capital five sen each to RM1.80 and RM7.95, while Vitrox, Cocoaland and Tong Herr fell four sen each to RM1.96, RM2.24 and RM2.40 respectively.

Scomi was the most actively trade counter with 13.5 million shares done. The stock added 2.5 sen to 31.5 sen.

Other actives'' included WTK, Karambunai, Petronas Chemicals, Mieco and Perisai.

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