Monday, October 24, 2011

Blue chips power ahead 22 pts

KUALA LUMPUR: Blue chips, led by Sime, Petronas stocks and Genting powered ahead in the first hour of trade on Monday, Oct 24 as investors were optimistic about the plan to contain the euro zone's sovereign debt crisis.

At 10am, the FBM KLCI was up 22.40 points or 1.56% to 1,461.23. Turnover was 330.95 million shares valued at RM223.96 million. The broader market displayed the positive outlook, with 395 gainers, 68 losers and 158 stocks unchanged.

The ringgit was firmer against the US dollar, up 0.0120 to RM3.1365. US crude oil was up 25 sen to US$87.65.

Key regional markets rallied, with the MSCI Asia Pacific Index up 1.7%. Hong Kong's Hang Seng Index opened up 3.1% to 18,584.46 and Singapore's Straits Times Index added 1.59% to 2,755.51 while Shanghai's Composite Index gained 0.66% to 2,332.51. Japan's Nikkei 225 rose 1.36% to 8,797.02.

Petronas Gas rose 30 sen to RM13.40 and PetDag 20 sen to RM16.40 while MISC added 20 sen to RM6.40.

BAT was the top gainer, adding 46 sen to RM44.90 while HLFG gained 38 sen to RM11.60 and Sime 29 sen to RM8.4 and DiGi 28 sen to RM31.86. Genting climbed 21 sen to RM9.96 and Genting PLANTATION []s to RM7.48.

CIMB Equities Research, in its technical analysis of the KLCI, said the 30-stock index went into a consolidation phase last

week. Index hit a high of 1,465 but succumbed to profit taking by the end of the week.

'This week, we expect the market to remain sideways, possibly between the 1,430-1,465 levels. A break either way will influence its next immediate term trend. If the 50-day SMA (1,437) fails to hold, then the bears would have an upper hand.

'Otherwise, there is still a possibility that the index may charge towards 1,465 again. If this level is taken out, then the

61.8% retracement of the July-September downtrend at 1,487 will be its next target to beat,' it said.

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