Friday, July 1, 2011

FBM KLCI begins 2H2011 at fresh historic high

KUALA LUMPUR: The FBM KLCI kicked off the second half of 2011 and closed at a fresh all-time high on Friday, July 1 as blue chips pushed the index above the 1,580-point level.

At 5pm, the 30-stock index rose 0.25% or 3.87 points to 1,582.94, lifted by gains including at Petronas-linked counters and index-linked PLANTATION [] stocks.

But the broader market remained tepid, with losers outpacing gainers by 388 to 352, while 317 counters traded unchanged. Volume was 801.95 million shares valued at RM1.40 billion.

Regional markets pared down some of the gains after China's factory sector grew at its slowest pace in 28 months in June as new orders expanded less quickly, with weaker global demand and tight monetary policy at home pinching production.

At the regional markets, Japan's Nikkei 225 rose 0.53% top 9,868.07, Taiwan's Taiex gained 1.01% to 8,739.82, South Korea's Kospi was up 1.19% to 2,125.74 and Singapore's Straits Times Index added 0.60% to 3,139.01.

The Shanghai Composite Index, however, shed 0.10% to 2,759.36.

RHB Research in its 2H market outlook and strategy report on July 1said as there was sustained earnings growth to create new shareholders' value for investors, there was still room for the market to move higher in the 2H of the year.

'Consequently, we are maintaining our end-2011 FBM KLCI target at 1,700, which is based on 15 times 2012 EPS and is supported by our bottom-up valuation methodology.

'We are of the view that external headwinds that dragged down global equities will likely dissipate and transform into potential catalysts for the market to come back,' it said.

The research house said market conditions would likely improve from the 2H as global headwinds dissipate and investors look forward to a brighter economic prospect in 2012.

'Consequently, any market pullback would present an opportunity for investors to accumulate fundamentally-robust stocks on weakness.

'Sector-wise, our key overweights are banking, oil & gas, timber and gaming,' it said.

On Bursa Malaysia, PPB was the top gainer and rose 46 sen to RM17.68; UMW added 26 sen to RM7.48, MSM 25 sen to RM4.98, DiGi 18 sen to RM29.22, MISC 14 sen to RM7.49, Hong Leong Bank 12 sen to RM13.50, MMHE seven sen to RM8.490, KLK six sen to RM22.22 and Sime Darby five sen to RM9.28.

Petronas Chemicals rose seven sen to RM7.16, Petronas Dagangan six sen to RM16.16, Petronas Gas four sen to RM13.26, Gamuda 10 sen to RM3.95, Metrod and United Plantations up 20 sen each to RM3.80 and RM20, Sapura Resources 17 sen to RM1.17 and Cepco added 15 sen to RM2.20.

Newly-listed Eversendai, which was the most actively traded counter today, pared down its gains and closed twp sen higher at RM1.72 with 59.47 million shares done.

Other actives included MSM, Time, KBB, TMS, Focus, Axiata, Gamuda and Genting Malaysia.

Decliners included Genting, JobStreet, Yinson, BLD Plantations, Hartalega and See Hup.

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