Thursday, August 4, 2011

FBM KLCI edges up on mild bargain hunting

KUALA LUMPUR: The FBM KLCI rebounded in early trade on Thursday, Aug 4 in line with the minor uptick overnight at Wall Street as well as the jump at Tokyo's Nikkei as the yen fell broadly after Japanese authorities intervened to weaken the currency.

Other Asian stock markets also drifted higher, but worries about global growth were likely to limit investor enthusiasm. The surge in safe-haven gold paused at US$1,662 an ounce as riskier assets made a tentative comeback, according to Reuters.

Finance Minister Yoshihiko Noda said Japan intervened unilaterally on Thursday, but declined to comment on the size of the intervention, it said.

The FBM KLCI rose 7.29 points to 1,552.39 at 10am, lifted by gains at select blue chips.

Gainers led losers by 308 to 116, while 212 counters traded unchanged. Volume was 307.04 million shares valued at RM249.67 million.

At the regional markets, Japan's Nikkei 225 added 0.90% to 9,724.21, Hong Kong's Hang Seng Index rose 0.37% to 22,073.98, the Shanghai Composite Index gained 0.68% to 2,696.61 and Singapore's Straits Times edged up 0.14% to 3,134.67.

Meanwhile, Taiwan's Taiex slipped 0.11% to 8,447.57 and South Korea's Kospi shed 0.05% to 2,065.23.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Aug 4 said that despite the US markets' minor rebound last night, there would some lukewarm nibbling activities in the local bourse today.

'Some solid profit-taking and liquidation activities will emerge later to depress the market's initial rise.

'However, we see a longer-term decline for the local and foreign indices. Sell on rallies,' he said.

On Bursa Malaysia, BAT was the top gainer at mid-morning and added RM46.50; United PLANTATION []s added 20 sen to RM20.80, Lafarge Malayan Cement 16 sen to RM7.48, GAB 14 sen to RM10.84, UM Land 13 sen to RM1.98, RHB Caoital 12 sen to RM9.23, PPB and KLK 10 sen each to RM17.30 and RM21.79, while Boustead added nine sen to RM5.89.

Sanichi, in which Datuk Md Wira Dani Abdul Daim, son of former finance minister Tun Daim Zainuddin, surfaced as a new substantial shareholder of ACE Market-listed SANICHI TECHNOLOGY [] BHD [], was the most actively traded counter.

The stock was unchanged at 9.5 sen with 27.4 million shares traded.

Other actives included IRIS, Smartag, Karambunai, Dutaland, Ramunia and MBSB.

Decliners included Khind, YTL Cement, Panasonic, Careplus and Kulim.

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