Friday, April 1, 2011

FBM KLCI kicks off 2Q on positive note

KUALA LUMPUR: The FBM KLCI extended its gains to start off the second quarter of 2011 on a positive note, as most key regional markets also opened slightly higher.

At 10am, the FBM KLCI was up 3.65 points to 1,548.78.

Gainers led losers by 260 to 169, while 251 counters traded unchanged. Volume was 339.63 million shares valued at RM280.67 million.

Asian shares rose on Friday, looking to extend three straight quarters of gains, while the dollar strengthened against most major currencies after hawkish comments from a senior US Federal Reserve official, according to Reuters.

Oil also kicked off the new quarter in positive fashion with US prices climbing after closing at their highest in 2-1/2 years on Thursday against the backdrop of continued fighting in Libya and unrest in the Middle East, it said.

At the regional markets, Hong Kong's Hang Seng Index rose 0.33% to 23,606.21, Singapore's Straits Times Index added 0.26% to 3,113.78, the Shanghai Composite Index edged up 0.02% to 2,928.82 and South Korea's Kospi was up 0.01% to 2,106.94.

Meanwhile, Japan's Nikkei 225 fell 0.11% to 9,744.34 while Taiwan's Taiex shed 0.17% to 8,668.18.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said ''that due to Wall Street's marginally weaker overnight close, the FBM KLCI could be in a benign mode today, with some pre-weekend profit taking activities.

'As the market re-visited and held above 1,474 recently, the FBM KLCI may now test the crucial areas of 1,558 and 1,576,' he said in a note to clients on April 1.

BIMB Securities Research meanwhile said that Wall Street closed lower hammered by higher crude oil price and disappointing first time claim on unemployment benefit.

It said crude oil rose to USD106.72 due to the negative development in Libya while first time claim on unemployment benefit dipped only by 6,000, lower than economists had expected.

Also, four of Ireland's major banks are on the brink of collapse and need 24 billion Euros to stay afloat.

'Expect some profit taking activity at the local market today as a result. Our year-end target for FBM KLCI is 1,600 points,' it said today.

Among the major gainers at mid-morning, Nestle rose 50 sen to RM47.30, Sapura Resources 22 sen to RM1.07, LPI Capital 18 sen to RM13.90, CIMB 15 sen to RM8.35, TSM 10 to RM1.92, while Genting Malaysia and Ta Ann gained nine sen each to RM3.77 and RM6.77.

DBE Gurney was the most actively traded counter with 29.8 million shares done. The stock added half a sen to 13 sen.

Other actives included Talam, Perisai, Olympia, IRCB, Kurnia Asia and MAA.

Meanwhile, decliners in early trade included Petronas Dagangan, Genting, Kotra, Kwantas, Boustead, Supermax, Utusan and Ekovest.

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