Friday, October 7, 2011

KLCI toys with 1,400-point level at mid-morning, MBSB in focus

KUALA LUMPUR: The FBM KLCI toyed with the 1,400-point level on Friday, Oct 7 as the country awaits the tabling of Budget 2012 by the Prime Minister later in the evening.

Meanwhile, the securities of MALAYSIA BUILDING SOCIETY BHD [] were in focus, as analysts have said the company stood to benefit should there be a wage adjustment in the Budget for civil servants.

At 10am, the FBM KLCI was up 6.30 points to 1,399.99, lifted by gains at select blue chips.

At the regional markets, Japan's Nikkei 225 was up 1.19% to 8,623.29, Hong Kong's Hang Seng Index added 2.36% to 17,577.92, Taiwan's Taiex rose 1.22% to 7,218.71, South Korea's Kospi gained 2.55% to 1,753.99 and Singapore's Straits Times Index edged up 0.97% to 2,628.38.

China's stock markets remain closed as part of a week-long national holiday.

BIMB Securities Research in a note Oct 7 said hopes were raised yesterday from the latest meeting between the European policy makers that a more cohesive effort is in order to pump liquidity into the financial system.

As a result, investors with a clearer mind and improved vision pushed all major European bourses up and the Dow Jones Industrial Average to another impressive 183 point gain breaking the 11,000 mark again, it said.

Regionally, most markets ended up in positive territory and Malaysia was no exception, it said.

The FBM KLCI almost tested the 1,400 level yesterday before closing at 1,394, it said.

'Looking back, we may indeed be going through a mini pre-budget rally this week and hopefully today's 2012 Budget announcement would not disappoint.

'Watch out for the CONSTRUCTION [] and oil & gas stocks today as we believe more announcements could be in the offing. More upside is expected today, 1,400 here we come!' it said.

MBSB was up 10 sen to RM1.57 with 17.4 million shares done, while its warrants gained five sen to 67.5 sen with 30.8 million units done.

OSK Research in a note Oct 7 said given MBSB's roles as a provider of personal loans to civil servants, a pay hike could be very positive to its business.

'MBSB is also expanding into providing an Islamic credit card for civil servants by year end and increased disposable incomes will be good for this new business,' it said.

Other actives included GPRO, Karambunai, Systech, SP Setia, Malton and UEM Land.

Shell was the top gainer and was up 40 sen to RM10; Cycle & Carriage and Petronas Dagangan added 18 sen each to RM3.40 and RM16.18, Panasonic 16 sen to RM19.54, Genting 15 sen to RM9.52, Proton 13 sen to RM2.83, Petronas gas 12 sen to RM12.78, Landmarks and BIMB 11 sen each to RM1.07 and RM1.97, while United Malacca added 10 sen to RM6.50.

Losers included Spritzer, Berjaya Assets, Integrax, MNRB, Scomi Engineering and Amway.

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