Wednesday, June 29, 2011

FBM KLCI stays firmly above 1,570-level, MSM still in focus

KUALA LUMPUR: The FBM KLCI extended its gains at mid-morning on Wednesday, June 29 in line with the firmer overnight close at Wall Street as well as the improved sentiment at most key regional markets.

Analysts however cautioned that some profit taking may set in as the long-term uncertainties over the global economy persist.

The FBM KLCI rose 4.12 points to 1,574.14 at 10am, lifted by gains at select blue chips.

Gainers led losers by 250 to 153, while 225 counters traded unchanged. Volume was 187.82 million shares valued at RM238.33 million.

At the regional markets, Japan's Nikkei 225 rose 1% to 9,745.69, Hong Kong's Hang Seng Index was up 0.49% to 22,170.27, Taiwan's Taiex added 0.37% to 8,510.55, South Korea's Kospi gained 0.95% to 2,082.51 and Singapore's Straits Times Index edged up 0.30% to 3,060.03.

Meanwhile, the Shanghai Composite Index shed 0.26% to 2,752.01.

BIMB Securities Research in a note June 29 said Wall Street rallied on news of improved data showing home prices improved in April, the first in nine months, cautioning that many expect the euphoria to be short-lived.

On the local front, the research house said the impressive performance by MSM Holdings Bhd helped push the FBM KLCI above the 1,570-level.

'We expect there to be some follow-through buying today taking cue from Wall Street but expect there to be some profit-taking as well.

'There is a likelihood that the FBM KLCI will test the next resistance seen at 1,577 level which is the all time high for the benchmark now,' it said.

Among the gainers, Shell and Parkson added 20 sen each to RM10.50 and RM6.15, Tradewinds 14 sen to RM10.76, MISC 13 sen to RM7.35, BAT, Nestle, Far East and Petronas Gas 10 sen each to RM46.20, RM47.50, RM7.35 and RM13.30 respectively, while APM Automotive added nine sen to RM4.88.

Newly-listed MSM Holdings was actively traded and extended its gains at mid-morning. The stock was up five sen to RM4.94 with 6.49 million shares traded.

Other actives included KBB, UEM Land, LBS, MAA, Green Packet and Bertam.

Among the decliners, EPIC and BLD PLANTATION []s fell 10 sen each to RM2.50 and RM6.79, LTKM nine sen to RM1.96, Ibraco eight sen to RM1.07, Knusford five sen to RM1.65 while Texchem and Faber lost four sen each to 63 sen and RM2.06.

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