Friday, September 30, 2011

KLCI extends gains, banks in focus

KUALA LUMPUR: The FBM KLCI extended its gains at mid-morning on Friday, Sept 29 as banking stocks came into focus with RHB Capital and OSK Investment Bank planning to start merger negotiations while CIMB acquired a 70% stake in a Thailand stockbroking firm.

Meanwhile, Asian stocks steadied on Friday with big gains unlikely as investors looked to take profits after three days of gains, according to Reuters.

The FBM KLCI rose 13.41 points to 1,400.87 at mid-morning.

Gainers outpaced losers by 335 to 92, while 158 counters traded unchanged. Volume was 282 million shares valued at RM267.19 million.

At the regional markets, Japan's Nikkei 225 rose 0.25% to 8,723.12, the Shanghai Composite Index added 0.46% to 2,376.22 and Taiwan's Taiex edged up 0.12% to 7,191.34.

Meanwhile, Hong Kong's Hang Seng Index fell 0.94% to 17,842.45, Singapore's Straits Times Index lost 0.44% to 2,696.15 and South Korea's Kospi shed 0.08% to 1,767.86.

BIMB Securities Research in a note Sept 29 said investors breathed a sigh of relief as Europe was edging closer to a bailout plan for Greece but there were still some detractors unconvinced of the package and commitment proposed.

Nonetheless, Wall Street buoyed by the development in Euro zone coupled with improved jobless claims figures finally rebounded from a volatile trading day to emerge with a 143 point gain, it said.

Regional markets after a rather mixed session with Hong Kong closed impacted by typhoon are expected to remain mixed albeit sentiments had improved somewhat, it said.

'On the local side, the FBMKLCI surprisingly closed the day with some gusto posting a 16 point gain breaking the immediate resistance of 1,380 underpinned by some bargain hunting activities.

'We are expecting some upside today with the benchmark index to edge closer to the 1,400 mark,' said the research house.

On Bursa Malaysia, OSK Holdings jumped 25 sen to RM1.64 with 10.5 million shares done while RHB Capital rose eight sen to RM7.24 after the two groups said they had applied to Bank Negara to start merger talks.

Meanwhile, HLFG added 20 sen to RM10.96, Maybank and Hong Leong Bank rose 12 sen each to RM8.10 and RM10.32, CIMB 11 sen to RM6.99 and AMMB 10 sen to RM5.90.

Other gainers included Nestle that rose 72 sen to RM47.72, Panasonic 32 sen to RM18.90, KLK and Genting 22 sen each to RM21.32 and RM9.55, Shell, Malayan Flour Mills and GAB 20 sen each to RM9.70, RM7.05 and RM9.95 respectively, while LPI Capital added 18 sen to RM11.98.

The actives included SP Setia warrants, Palette, Trinity, Key West, UEM Land, AirAsia and Asia EP, while losers included Litrak, KLCCP and Notion.

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