Wednesday, August 10, 2011

KLCI edges up, but gains limited

KUALA LUMPUR: The FBM KLCI closed in positive territory on Wednesday, Aug 10 but pared down its gains substantially in line with the cautious sentiment at key regional markets.

The FBM KLCI ended 8.38 points higher at 1,480.52. It had earlier in the day risen to its intra-day high of 1,490.72.

Gainers led losers by 590 to 292, while 264 counters traded unchanged.

At the regional markets, Hong Kong's Hang Seng Index added 2.34% to 19,783.67, Japan's Nikkei 225 rose 1.05% to 9,038.74, the Shanghai Composite Index rose 0.91% to 2,549.18, Taiwan's Taiex rose 3.25% to 7,736.32, South Korea's Kospi edged up 0.27% to 1,806.24 but Singapore's Straits Times Index fell 2.18% to 2,821.09.

Asian investors markets remained cautious as while the US Federal Reserve pledged to keep rates steady for at least two years, it also signaled that the economic growth in the US had been considerably lower than expected.

Strategists at The Royal Bank of Scotland explained that the indicated that conditions were likely to warrant low rates through at least mid-2013.

'The Fed also noted that downside risks to the economy had increased. Indeed, their bias to ease further was clear throughout the statement.

'The Committee discussed a range of policy tools available to promote a stronger economic recovery and said it was prepared to employ those tools as appropriate,' they said in a note Aug 10.

Though this was not an official forecast round (no formal forecasts were submitted by Committee members), the statement acknowledged that the FOMC now expected a slower pace of recovery over coming quarters than it did at the previous meeting and also that the unemployment rate would decline only gradually toward levels consistent with dual mandate, they said.

On Bursa Malaysia, Top Glove led the gainers and was up 91 sen to RM5.88; Panasonic rose 58 sen to RM23.48, F&N 46 sen to RM18.46, BAT 40 sen to RM43.60, Tan Chong and Dutch Lady up 38 sen to RM5.08 and RM18.08, PPB 36 sen to RM17, Batu Kawan 32 sen to RM15.42, Lafarge Malayan Cement 30 sen to RM6.70 and Nestle 28 sen to RM47.48.

AirAsia, which inked a tie-up with MAS, was the most actively traded counter with 90.5 million shares done. The stock fell 41 sen to RM3.54 after UOBKayHian downgraded it to Sell with a lower target price of RM3.50 (from RM4.60).

The research house said that while an alliance between AirAsia and MAS would benefit Khazanah Nasional Bhd, it did not see AirAsia getting any benefit.

Other actives included Axiata, MAS, Ranhill, Petronas Chemicals, I-Power, UEM Land, Bumi Armada and Dutaland.

Among the decliners, MMHE fell 45 sen to RM6.45, YTL Cement 20 sen to RM4.44, Sarawak PLANTATION []s 19 sen to RM2.18, Shell 18 sen to RM10, Hong Leong Industries and Petronas Chemicals 13 sen each to RM3.87 and RM6.19, while Gamuda fell 12 sen to RM3.22.




No comments:

Post a Comment