Tuesday, November 8, 2011

KLCI extends gains at mid-morning amidst cautious sentiment

KUALA LUMPUR (Nov 8): The FBM KLCI extended its gains at mid-morning on Tuesday, Nov 8 but trading remained relatively muted in line with the cautious sentiment at most key regional markets.

At 10am, the 30-stock index rose 11.99 points to 1,489.50, lifted by gains at select blue chips.

Gainers led losers by 316 to 103, while 185 counters traded unchanged. Volume was 442.79 million shares valued at RM265.13 million.

Meanwhile, Asian shares rose on Tuesday, but gains were capped by concerns that surging bond yields could stifle debt-ridden Italy's fund raising ability and throw the euro zone deeper into financial turmoil, while Greece struggled to pick a new leader, according to Reuters.

At the regional markets, Hong Kong's Hang Seng Index added 0.52% to 19,779.38, Taiwan's Taiex rose 0.70% to 7,675.10, Singapore's Straits Times Index gained 0.59% to 2,865.08 and South Korea's Kospi was up 0.17% to 1,922.45.

Meanwhile, Japan's Nikkei 225 fell 0.27% to 8,743.15 and the Shanghai Composite Index shed 0.08% to 2,507.75.

BIMB Securities Research in a note Nov 8 said that Europe's musical chair continued, adding now that Greece seemed to have its house in order with the imminent resignation of its Prime Minister, focus had shifted to Italy after its borrowing costs as reflected by its 10-year treasury yield which touched a record high of 6.68% yesterday (as compared to Greece's 27.85%).

Italy has the second highest public debt versus GDP ratio of 119% in Europe after Greece's 143%, it said.

Many believe Italy may also see a change in its Government hence the softer closing of most European bourses, it said.

The research house said trading on Wall Street was choppy yesterday before ending the session 85 points higher above the 12,000 mark, adding that regional bourses were generally weaker on Eurozone concerns.

'We would expect the FBM KLCI to open weaker today on a jittery market undertone.

'Nonetheless, we see the benchmark index to be range bound between the 1,460-1,480 levels,' it said.

On Bursa Malaysia, DiGi was the top gainer at mid-morning and was up 58 sen to RM33.88; KLK added 32 sen to RM21.32, BAT 30 sen to RM46.48, Harvest Court 26.5 sen to RM1.14, Petronas Dagangan'' 24 sen to RM16.32, Malaysia Smelting Corp 21 sen to RM4.18, Petronas Gas and PPB 20 sen each to RM13.34 and RM17.26, while MISC gained 19 sen to RM7.08.

Meanwhile, Bursa Malaysia Securities Bhd issued an Unusual Market Activity (UMA) query to SANICHI TECHNOLOGY [] BHD [] over the sharp rise in price and high volume of the company's shares.

Sanichi was up 1 sen to 9.5 sen with 47 million shares traded.

Other actives included Harvest Court, Compugates, HWGB, Flonic and AsiaBio.

Decliners included Panasonic, PacificMas, KESM, Nilai, Batu Kawan, Tan Chong and Kulim.

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