Tuesday, October 11, 2011

KLCI stays in the black; Sime Darby and E&O to resume trade

KUALA LUMPUR: The FBM KLCI stayed in positive territory at the mid-day break on Tuesday, Oct 11 in line with the gains at key regional markets.

Hong Kong shares rallied on Tuesday with financials leading the charge a day after China stepped in to prop up beaten down prices on mainland markets in a move widely seen as one designed to bolster investor confidence in the banking sector, according to Reuters.

Market players remained cautious, however, with early gains on the Shanghai Composite Index fading, while turnover in Hong Kong did not show a sharp pick up to accompany the rally, suggesting gains in banks were still coming from short-covering rather than buying by long-only funds, it said.

The FBM KLCI was up 0.97% or 13.52 points to 1,410.56 at the mid-day break, lifted by gains at selected blue chips.

Gainers led losers by 595.91 million shares valued at RM623.71 million.

The ringgit weakened 0.01% to 3.1229 versus the US dollar; crude palm oil futures for the third month delivery rose RM4 per tonne to RM2,808, crude oil shed 11 cents per barrel to US$85.30 while gold gained US$2.30 an ounce to US$1,678.85.

Meanwhile, SIME DARBY BHD [] said it was not required to make a mandatory general offer for the remaining shares in Eastern & Oriental Bhd, following a ruling by the Securities Commission (SC).

In a filing to Bursa Malaysia Securities on Tuesday, Oct 11, Sime Darby said the SC had via letter said the conglomerate and Datuk Terry Tham Ka Hon were not parties acting in concert and as such a mandatory offer obligation would not arise.

Trading in the securities of Sime Darby and E&O were suspended with effect from 9am this morning and will resume trade at 2.30pm today.

At the regional markets, Hong Kong's Hang Seng Index jumped 3.26% to 18,287.94, Taiwan's Taiex gained 2.4% to 7,385.16, Singapore's Straits Times Index rose 2.21% to 2,727.16, Japan's Nikkei 225 added 2.02% to 8,779.60, South Korea's Kospi gained 1.99% to 1,801.62 while the Shanghai Composite Index rose 0.72% to 2,361.58.

On Bursa Malaysia, Hong Leong Bank was the top gainer this morning and added 52 sen to RM10.76; SIG Gases and KLK 30 sen each to 97.5 sen and RM20.64, Amway and Guan Chong 29 sen each to RM8.65 and RM2.30, Perstima and Genting 25 sen each to RM3.86 and RM9.34, RHB Capital 23 sen to RM6.76 and TSH Resources 22 sen to RM3.15.

Among the decliners, AIC fell 26 sen to RM1.19, BDB 10 sen to RM1.10, Atlan eight sen to RM2.82, Hing Yap seven sen to RM1.44, CHHB six sen to 96 sen, Kawan Food, Asas and Paos down five sen each to 80.5 sen, 95 sen and 60 sen respectively, while Jetson lost 4.5 sen to 99.5 sen.

The actives included Timecom, Dutaland, SAAG, Tejari, UEM Land, Malton, GPRO and OSK.

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