Wednesday, December 21, 2011

KLCI trends higher at mid-morning, breaches 1,480-level

Larger Smaller Reset KUALA LUMPUR (Dec 21): The FBM KLCI trended firmly higher at mid-morning on Wednesday as China and Taiwan stepped in to support their respective stock markets, while encouraging data released overnight in the US and Germany gave Wall Street a much-need boost.

At 10am, the FBM KLCI was up 17.24 points to 1,482.41, lifted by gains at select blue chips.

Gainers led losers by 333 to 103, while 219 counters traded unchanged. Volume was 361.54 million shares valued at RM215.54 million.

China's National Social Security Fund (NSSF) plans to spend around 10 billion yuan ($1.58 billion) to boost local stocks, the Shanghai Securities News reported on Wednesday, according to Reuters.

Meanwhile, Taiwan's government has authorised a state fund to step into the stock market to support prices, citing recent declines in the benchmark index and the impact of global economic uncertainties, it said.

At the regional markets, Japan's Nikkei 225 rose 1.54% to 8,464.94, Hong Kong's Hang Seng Index added 2% to 18,441.51, the Shanghai Composite Index was up 0.47% to 2,226.43, Taiwan's Taiex jumped 3.93% to 6,924.80, South Korea's Kospi added 2.84% to 1,844.03 and Singapore's Straits Times Index rose 1.54% to 2,654.76.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Dec 21 said the FBM KLCI's resistance areas of 1,470 and 1,510 could cap market gains, whilst the obvious support areas may be located at 1,449 and 1,465.

'Due to the US markets' buoyant tone last night, we may have a gap-up day followed by profit-taking today,' he said.

Among the gainers at mid-morning, BAT added 70 sen to RM48.70, HLFG 24 sen to RM11.66, PPB and Genting 22 sen each to RM16.92 and RM10.58, GD Express 21 sen to RM1.19, KAF, BHIC and Dutch Lady 18 sen each to RM1.66, RM3.36 and RM23.58 respectively, while Tradewinds PLANTATION []s added 17 sen to RM4.48.

Among the decliners, Batu Kawan fell 20 sen to RM17, Uzma 13 sen to RM1.57, Nestle 10 sen to RM56.20, MPI eight sen to RM2.65, Ho Hup down 7.5 sen to 61.5 sen, MGRC seven sen to 62 sen, Vastalux 5.5 sen to 3 sen, IGB five sen to RM2.37 and Dijaya Corp four sen to RM1.37.

The actives at mid-morning included JCY, TMS, Vastalux, Nova MSC, Focus and Maxbiz.

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