Wednesday, June 22, 2011

Asian stocks extend gains in cautious trade

KUALA LUMPUR: Asian stock markets extended their gains on Wednesday, June 22 after Greece's government survived a confidence vote crucial to avoiding a sovereign default.

However, the trading sentiment remained cautious ahead of the end of the Federal Open Market Committee's two-day meeting later today.

The FBM KLCI edged up 1.61 points to 1,562.40 at 10am, lifted by gains at select blue chips.

Gainers led losers by 211 to 157, while 223 counters traded unchanged. Volume was 155.60 million shares valued at RM177.79 million.

At the regional markets, Japan's Nikkei 225 rose 1.30% to 9,582.73, Hong Kong's Hang Seng Index gained 0.79% to 22,022.87, the Shanghai Composite Index edged up 0.18% to 2,651.16, Taiwan's Taiex rose 0.58% to 8,647.32, South Korea's Kospi up 0.92% to 2,067.11 and Singapore's Straits ''Times Index advanced 0.26% to 3,061.42.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on June 21 said that due to US markets' rebound tone last night, there could be some initial low volume buying activities in the local bourse today.

'The market could possibly rise, with some profit taking activities later in the day. As a result we expect the FBM KLCI to remain volatile on an intra-day basis today.

'Investors should trade the market with a short-term time frame,' he said.

On Bursa Malaysia, HLFG was the top gainer at mid-morning and rose 20 sen to RM13.40; Tan Chong and Petronas Dagangan added 14 sen each to RM4.68 and RM15.954, Tradewinds, F&N and PPB gained 12 sen each to RM10.50, RM19.42 and RM17.22 respectively, Genting and C.I. Holdings up eight sen each to RM10.98 and RM3.20, IJM PLANTATION []s six sen to RM2.92 and Harrisons five sen to RM4.

KBB was the most actively traded counter with 16.5 million shares done. The stock added 2.5 sen to 39.5 sen.

Other actives included MAA, HWGB, Compugates, Ingenuity Solutions, Silver Bird, Sime Darby and AirAsia.

Decliners at mid-morning included Tasek, MPI, Amway, Shell, DiGi and Panasonic.

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