Tuesday, 14 February 2012

CIMB boost for KLCI, but broader market weaker

KUALA LUMPUR (Feb 14): Blue chips closed higher on Tuesday, extending their gains again for the second day on fund buying of selected index linked stocks, especially banking stocks like CIMB, but the broader market displayed some caution.

The FBM KLCI rose 3.23 points to 1,566.05. Turnover was 2.55 billion shares valued at RM2.25 billion. Declining stocks beat advanced 581 to 321 while 288 stocks were unchanged.

Rating agency Moody’s put a dampener on the markets, threatening to put the United Kingdom's triple-A rating in jeopardy for the first time and warned it may cut France as well, while downgrading six euro zone nations including Spain and Italy.

European shares fell as the ratings move by Moody's was a reminder to investors about the problems faced by the Europe to fight the debt crisis, with the agency saying it was concerned about whether governments could implement the reforms necessary to address it, Reuters reported.

Among regional markets, Japan’s Nikkei 225 rose 0.59% to 9,052.07, Hong Kong’s Hang Seng Index added 0.15% to 20,917.80 and Singapore’s Straits Times Index 0.3% higher at 2,985.37. However, Shanghai’s Composite Index lost 0.3% to 2,344.77, Taiwan’s taiex 0.36% lower at 7,884.08 and South Korea’s Kospi 0.15% lower at 2,002.64.

US light crude oil rose 0.04% to US$100.95 per barrel. The ringgit weakened against the US dollar to 3.0455.

Crude palm oil futures rose, with the third-month delivery up RM14 to RM3,181. This was the highest level in three week on market concerns that output in Malaysia would fall for the fourth consecutive month.

Among the banks, CIMB rose 15 sen to RM7.31, pushing the KLCI up 2.64 points. Public Bank added four sen to RM13.98, Maybank two sen to RM8.52 and Hong Leong Bank 14 sen to RM11.70.

Genting Malaysia added five sen to RM3.94 and GENTING BHD [] four sen to RM10.54 while Sime Darby three sen to RM9.64.

Hibiscus was the top gainer, up 31 sen to RM1.82 and the warrants five sen to RM1.02, BAT 28 sen to RM51.78, Aeon Credit 24 sen to RM7.58 and F&N 24 sen to RM17.60.

Naim Indah was the most active with 315.10 million shares done. It was eight sen lower at 48 sen, the third straight day of losses. However, investors should be aware of the price surge from only nine sen on Feb 2.

JCY lost nine sen to RM1.26 as it recent run-up seemed to have exhausted. CIMB Research said JCY’s rally from the 38.5 sen September low has been nothing but spectacular. “However, we think that this rally is over and looks poised for a deep correction,” it said.

Among the decliners were KLK, down 52 sen to RM25.46, dragging the index down by 0.87 of a point. AirAsia gave up eight sen to RM3.68, Tenaga and Telekom six sen each to RM6.13 and RM4.81 while YTL shed four sen to RM1.48.

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