Blue chips close slightly lower, Tenaga, MMHE weigh

KUALA LUMPUR (Jan 18): Blue chips closed slightly lower on Wednesday, weighed down by declines in heavyweights Tenaga and MMHE but the broader market was mixed, with strong trading interest in small caps and penny stocks.

At 5pm, the FBM KLCI was down 1.98 points to 1,517.38. Turnover was 1.49 billion shares valued at RM1.60 billion. There were 368 gainers, 364 losers and 359 stocks unchanged.

Among key regional markets, Japan’s Nikkei 225 rose 0.99% to 8,550.58, Hong Kong’s Hang Seng Index added 0.30% at 19,686.92 but South Korea’s Kospi shed 0.02% to 1,892.39 and Singapore’s Straits Times Index fell 0.79% to 2,793.53.

European markets were in the red as investors were worried about Greek bond talks and government debt sales, a day after economic data had raised hopes the global economy wouldn't slowdown as much as feared.

Reuters reported international creditors are set to meet the Greek government to resume the talks that broke down last week over the interest rate Greece will offer on new bonds and a plan to enforce investor losses. A deal with the private sector is vital to cash-strapped Athens if it is to avoid going bankrupt when 14.5 billion euros ($18.5 billion) of bond redemptions fall due in late March.

At Bursa Malaysia, the KLCI was trading between 1,513 and 1,519 and managed to close off its intra-day low of 1,513.

A fund manager said the markets had priced in the eurozone crisis and he expected to see more upside for the markets, albeit intermittent swings in trading conditions depending on the newsflow.

At Bursa Malaysia, he said there was some profit taking ahead of the Chinese New Year next week, especially on stocks which had run-up recently. He expected the market to hold steady at the current levels.

Among the heavyweights, Tenaga fell 13 sen to RM6.10 after reporting net losses in the first quarter ended Nov 30, 2011. MMHE shed 12 sen to RM5.32 on concerns about the uncertainties about its projects and delays.

Petronas Dagangan and Petronas Gas fell 10 sen each to RM17.40 and RM15.28.

EUPE was the top loser, down 14.5 sen to 48.5 sen, Ibraco 14 sen lower at RM1.30 and Ireka 12.5 sen to 66.5 sen in thin trade.

Poultry stock DBE was the most active with 138.96 million shares done, adding two sen to 11 sen while its warrants rose 1.5 sen to 6.5 sen.

BIMB, seen as the only Syriah-compliant banking stock, jumped 22 sen to RM2.24 in heavy trade with 10.21 million units done. BIMB-CB added 1.5 sen to 9.0 sen and BIMB-CC six sen to 17.5 sen. The two warrants accounted for 100 million units transacted.



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KLCI pares down losses at mid-day

KUALA LUMPUR (Jan 18): The FBM KLCI pared down some of its losses at the mid-day break on Wednesday as key regional markets steadied on favourable economic data from China a day earlier.

However, cautioned reigned as focus returned to Europe with Portugal testing investor confidence in a debt sale and Greece resuming talks on its debt restructuring.

The FBM KLCI shed 0.14 of a point to 1,519.22 at the mid-day break on Wednesday. It had earlier fallen to its intra-morning low of 1,514.39.

Gainers trailed losers by 288 to 316, while 316 counters traded unchanged. Volume was 733.89 million shares valued at RM584.19 million.

The ringgit strengthened 0.25% to 3,1175 versus the US dollar; crude palm oil futures for the third month delivery fell RM8 per tonne to RM3,156, crude oil added 62 cents per barrel to US$101.33 while gold gained US$1.97 an ounce to US$1,654.02.

At the regional markets, Japan’s Nikkei 225 rose 1.42% to 8,586.73, Hong Kong’s Hang Seng Index gained 0.30% to 19,685.80, South Korea’s Kospi was up 0.29% to 1,898.18, Taiwan’s Taiex rose 0.20% to 7,235.27 and Singapore’s Straits Times Index gained 0.19% to 2,821.27.

Meanwhile, the Shanghai Composite Index fell 0.33% to 2,290.81.

On Bursa Malaysia, Eupe fell 14.5 sen to 48.5 sen, Ibraco and MMHE lost 14 sen each to RM1.30 and RM5.30, Ireka lost 13 sen to 66 sen, Petronas Gas 12 sen to RM15.26, Tenaga 11 sen to RM6.12, Metrod 10 sen to RM2, Perduren down 7.5 sen to 75 sen, while Fututec and Maybank fell seven sen each to 72 sen and RM8.22.

Among the gainers, GAB added 40 sen to RM12.20, KLK 24 sen to RM24.88, Far East 20 sen to RM7.20, MPHB 14 sen to RM2.86, Sungei Bagan and Petronas Chemicals up 12 sen each to RM2.94 and RM6.63, Degem 10.5 sen to RM1.05, while Batu Kawan and BAT added 10 sen each to RM18.66 and RM49.90.

DBE Gurney was the most actively traded counter with 70.3 million shares done. The stock gained one sen to 10 sen.

Other actives included Compugates, Wijaya, XDL, E&O, BIMB and MPHB.



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KLCI tapers down at mid-morning on mild profit taking

KUALA LUMPUR (Jan 18): The FBM KLCI slipped into negative territory at mid-morning on Wednesday on mild profit taking as investors began squaring off positions ahead of the extended weekend to celebrate the Chinese New Year next week.

At 10am, the FBM KLCI fell 2.19 points to 1,517.17, weighed by select blue chips.

Gainers edged losers by 209 to 185, while 229 counters traded unchanged. Volume was 361.96 million shares valued at RM185.82 million.

Asian shares and the euro steadied on Wednesday after sentiment improved on soothing economic data the day before, as focus returns to Europe with Portugal testing investor confidence in a debt sale and Greece resumes talks on its debt restructuring, according to Reuters.

European equities hit their highest in more than five months while gains in U.S. stocks were pared on Tuesday after Citigroup Inc reported an 11 percent drop in quarterly profit, as the European crisis battered capital markets and hurt the bank's trading revenue and fee-generating deals, it said.

At the regional markets, Japan’s Nikkei 225 rose 0.11% to 8,476.12, Hong Kong’s Hang Seng Index added 0.14% to 19,654.70, the Shanghai Composite Index was up 0.17% to 2,302.31 and Taiwan’s Taiex gained 0.24% to 7,238.25.

Meanwhile, South Korea’s Kospi fell 0.22% to 1,888.53 and Singapore’s Straits Times Index shed 0.19% to 2,810.36.

BIMB Securities Research in note Jan 18 said that investors’ risk appetite had expanded, adding that despite the looming Greece debt default and the recent downgrade of some European credit ratings, equity markets both in the US and Europe advanced buoyed by positive economic news.

Unlike previously, the positives now carry higher multiplier effects than the negatives, it said.

Reflecting the improved sentiments, yields of Italy, Germany and Spain had all declined, it said.

The research house said most European bourses closed higher overnight with the Dow Jones Industrial Average upped 60 points despite off its intra-day high.

Regional performances were also on a high with most ended the day on positive tone possibly from improved opening over in Europe, it said.

“Locally, the FBM KLCI rose 10 points yesterday to close above its immediate resistance of 1,515 at 1,519.36.

“We reckon there are funds out there snapping at equities on weakness and see the index to remain resilient. We may see the next immediate resistance of 1,525 level breached today,” it said.

On Bursa Malaysia, Petronas Dagangan was the top loser at mid-morning and fell 34 sen to RM17.16; Ireka and Eupe fell 13 sen each to 66 sen and 50 sen, Tenaga down 12 sen to RM6.11, Malayan Flour Mills and Maybank nine sen each to RM7.68 and RM8.20, United PLANTATION []s and PPB six sen each to RM20 and RM16.94, while Sapura Industrial and Delloyd fell five sen each to RM1.40 and RM3.38.

DBE Gurney was the most actively trade counter with 49.3 million shares done. The stock gained one sen to 10 sen.

Other actives included XDL, E&O, BIMB, Compugates, Mudajaya and Maybulk.

Gainers at mid-morning included BAT, Sungei Bagan, Batu Kawan, HLFG, Carlsberg, Parkson, Genting, CCM and Mudajaya.



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