Thursday, October 6, 2011

KLCI casts its eye on crucial 1,400

KUALA LUMPUR: Mild fund buying of index-linked stocks nudged the FBM KLCI closer to the 1,400 level on Thursday, Oct 6, providing some encouragement to smaller players as sentiment across the region was bolstered by firmer European bourses and Wall Street.

The KLCI closed 18.02 points higher at 1,392.69. Turnover was 994.18 million valued at RM1.38 billion. The overall tone of the market was firm, with 535 gainers to 186 losers while 257 stocks were unchanged. This was also the first time in many weeks that turnover on Bursa neared the one billion units.

In Hong Kong, the Hang Seng Index surged 5.7% on Thursday, snapping a four-day losing streak, as investors covered positions in stocks they had heavily shorted in recent sessions, but many traders doubted that the gains could be sustained, Reuters reported.

The markets, including European bourses, rose after the European Union's executive proposed coordinated recapitalisation of banks on Thursday as the bloc's regulators met to review capital buffers of stressed lenders.

Japan's Nikkei 225 rose 1.66% to 8,522.02, Taiwan's Taiex rose 2.04% to 7,132.00, South Korea's Kospi gained 2.63% to 1,710.32 while Singapore's STI added 2.9% to 2,603.12.

On the commodity front, crude palm oil futures for third-month delivery rise RM19 to RM2,809, off the day's low of RM2,757. US crude oil added US$1.14 to US$80.84. The ringgit was firmer against the US dollar, rising 0.0141 to 3.1774.

At Bursa, property-related stocks were among the most active counters, UEM Land added six sen to RM1.77, Malton added 2.5 sen to 57 sen.

MBSB-WA was the most active, jumping 15.5 sen to 62.5 sen, MBSB-CA four sen to 7.5 sen while the mother shares, MBSB was 18 sen higher at RM1.47.

Among the index-linked banks, CIMB rose 23 sen to RM7.06, pushing the index up by 3.96 points while Maybank added 16 sen to RM8.17 abd AMMB 21 sen to RM5.80.

Tenaga rose 17 sen to RM5.22, Petronas Chemicals 13 sen to RM5.66 and Genting 10 sen to RM9.10 while MISC added 10 sen also to RM6.

PLANTATION []s perked up a bit after the recent selling, with diversified Sime Darby ' which is involved in plantations, property, heavy equipment ' chalking up 12 sen to RM8.54. IOI Corp added 11 sen to RM4.55 and BLD Plantations 22 sen to RM5.82.

CONSTRUCTION [] stocks were among the gainers with cement maker Lafarge adding 31 sen to RM6.88 and IJM 26 sen to RM5. Gamuda, an index-linked stock, added 12 sen to RM3.08. Investors expect construction activity to pick up next year.

BAT and GAB fell on concerns of hikes in sin taxes. BAT lost 26 sen to RM43.58 and GAB eight sen to RM9.70.

Glove makers fell, with Top Glove down 22 sen to RM4.16, Supermax 15 sen to RM3.13 and Kossan nine sen to RM2.79 as the recent run-up proved unsustainable.

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