KUALA LUMPUR: Key regional markets extended their gains in the morning session on Friday, Oct 28, as investors bet that equities could continue to rise after European leaders put together a one trillion euro rescue package.
The question on investors' minds is whether the run-up is sustainable and if so, can the FBM KLCI test the formidable 1,500 level in the short term.
At midday, the 30-stock index was up 11.64 points or 0.78% to 1,482.57. However, year-to-date, it is down 2.40%. Turnover was heavy with 1.22 billion shares done valued at RM1.127 billion. There were 456 gainers, 260 losers and 303 stocks unchanged.
Among the regional markets, Japan's Nikkei 225 rose 0.98% to 9,014.22, Hong Kong's Hang Seng Index added 1.89% to 20,061.44, Shanghai's Composite Index rose 1.10% to 2,462.38 and South Korea's Kospi 0.43% to 1,930.26. Singapore's Straits Times Index added 1.45% to 2,888.89.
Reuters reported the head of Europe's bailout fund as saying on Friday he does not expect to reach a conclusive deal with Chinese leaders during a visit to Beijing but expects the surplus-rich country will continue to buy bonds issued by the fund.
Klaus Regling, chief executive of the European Financial Stability Facility (EFSF), also said the bailout deal with Greece was an exceptional case and he saw no need to repeat it for other nations.
Reuters said The EFSF, set up last year and so far used to bail out Portugal and Ireland, is a 440 billion euro fund based on guarantees from all euro zone member states, raising capital on international markets by selling bonds.
Investors want to know how the 440 billion euro EFSF rescue fund will be leverage to 1 trillion euros to put a safety net under bigger euro zone states, such as Spain and Italy and prevent them from being swept up by the crisis.
Meanwhile, the ringgit strengthened against the US dollar to 3.0750 while crude palm oil third-month futures fell RM6 to RM2,974 per tonne. US light crude oil fell 34 cents to US$93.62.
At Bursa, GENTING BHD []'s 36 sen jump to RM10.66 pushed the KLCI up 3.08 points while CIMB's 11 sen gain to RM7.39, gave the index a 1.89 point increase.
Among the consumer stocks, BAT was the top gainer, up 70 sen to RM46, Nestle 54 sen to RM50, Dutch Lady 40 sen to RM20.36, F&N 26 sen to RM16.66 and GAB 14 sen to RM10.70.
KLK rose 44 sen to RM21.04, MMHE 25 sen to RM6.37 while MAHB added 34 sen to RM6.22.
Hirotako warrants were the most active with 66.51 million units done. It fell 8.5 sen to 15 sen as investors reacted to the 5.0 sen offered by MBM Resources in the takeover offer. Hirotako shares added six sen to 94 sen.
The decliners were Tong Herr and Atlan, down 14 sen each to RM2 and RM3.02 while BLD PLANTATION []s gave up 10 sen to RM6.80 and CI Holdings shed 10 sen to RM4.90.
The question on investors' minds is whether the run-up is sustainable and if so, can the FBM KLCI test the formidable 1,500 level in the short term.
At midday, the 30-stock index was up 11.64 points or 0.78% to 1,482.57. However, year-to-date, it is down 2.40%. Turnover was heavy with 1.22 billion shares done valued at RM1.127 billion. There were 456 gainers, 260 losers and 303 stocks unchanged.
Among the regional markets, Japan's Nikkei 225 rose 0.98% to 9,014.22, Hong Kong's Hang Seng Index added 1.89% to 20,061.44, Shanghai's Composite Index rose 1.10% to 2,462.38 and South Korea's Kospi 0.43% to 1,930.26. Singapore's Straits Times Index added 1.45% to 2,888.89.
Reuters reported the head of Europe's bailout fund as saying on Friday he does not expect to reach a conclusive deal with Chinese leaders during a visit to Beijing but expects the surplus-rich country will continue to buy bonds issued by the fund.
Klaus Regling, chief executive of the European Financial Stability Facility (EFSF), also said the bailout deal with Greece was an exceptional case and he saw no need to repeat it for other nations.
Reuters said The EFSF, set up last year and so far used to bail out Portugal and Ireland, is a 440 billion euro fund based on guarantees from all euro zone member states, raising capital on international markets by selling bonds.
Investors want to know how the 440 billion euro EFSF rescue fund will be leverage to 1 trillion euros to put a safety net under bigger euro zone states, such as Spain and Italy and prevent them from being swept up by the crisis.
Meanwhile, the ringgit strengthened against the US dollar to 3.0750 while crude palm oil third-month futures fell RM6 to RM2,974 per tonne. US light crude oil fell 34 cents to US$93.62.
At Bursa, GENTING BHD []'s 36 sen jump to RM10.66 pushed the KLCI up 3.08 points while CIMB's 11 sen gain to RM7.39, gave the index a 1.89 point increase.
Among the consumer stocks, BAT was the top gainer, up 70 sen to RM46, Nestle 54 sen to RM50, Dutch Lady 40 sen to RM20.36, F&N 26 sen to RM16.66 and GAB 14 sen to RM10.70.
KLK rose 44 sen to RM21.04, MMHE 25 sen to RM6.37 while MAHB added 34 sen to RM6.22.
Hirotako warrants were the most active with 66.51 million units done. It fell 8.5 sen to 15 sen as investors reacted to the 5.0 sen offered by MBM Resources in the takeover offer. Hirotako shares added six sen to 94 sen.
The decliners were Tong Herr and Atlan, down 14 sen each to RM2 and RM3.02 while BLD PLANTATION []s gave up 10 sen to RM6.80 and CI Holdings shed 10 sen to RM4.90.
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