KLCI stays above 1,570-level at mid-day

KUALA LUMPUR (March 14): The FBM KLCI remained in positive territory at the mid-day break on Wednesday and stayed above the 1,570 level in line with the positive sentiment at key regional markets.

Asian markets extended their gains from the morning on the back of a firmer overnight close at Wall Street and were given an added impetus after most of the largest U.S. banks passed their annual stress test, according to the Federal Reserve, in a conservative report card that underscored the recovery of the financial sector but called out a few laggards, including Citigroup.

The Fed announced the results in an earlier-than-expected release on Tuesday. JPMorgan Chase pulled the trigger on announcing its own glowing marks before the Fed's release, and helped lift the stock market, according to Reuters.

At 12.30pm, the KLCI was up 9.20 points to 1,573.22. Gainers led losers by 427 to 221, while 318 counters traded unchanged. Volume was 630.98 million shares valued at RM701.74 million.

The ringgit weakened 0.20% to 3.0044 versus the US dollar; crude palm oil futures for the third month delivery rose RM45 per tonne to RM3,337, crude oil added 32 cents per barrel to US$107.90 while gold rose US$5.18 an ounce to US$1,704.95.

At the regional markets, Japan's Nikkei 225 rose 1.74% to 10,071.70, Hong Kong’s Hong Seng Index rose 1.28% to 21,613.40, the shanghai Composite Index added 0.74% to 2,474.07, South Korea’s Kospi gained 1.34% to 2,052.22 and Singapore’s Straits Times Index was up 1.14% to 3,023.10.

At Bursa Malaysia, BAT added RM1.18 to RM53.98, Aeon 39 sen to RM9.50, GAB 20 sen to RM13.44, Toyo Ink 19 wen to RM1.63, United PLANTATION []s and Shell 18 sen each to RM25 and RM10.18, Jaya Tiasa 14 sen to RM7.60, UMW 12 sen to RM7.24, Panasonic and Johore Tin 12 sen each to RM22.20 and RM1.33.

Naim Indah Corp was the most actively traded counter with 99.9 million shares done. The stock fell 1.5 sen to 67 sen.

Other actives included astral Supreme, Euro Holdings, YTL, Sing Heng Chan, Tiger Synergy, Hwatai and Camres.

Meanwhile, decliners in the morning session included Tahps, Sunchirin, Warisan, Scientex, BOnia, MIlux, APB and Batu Kawan.



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Regional markets extend gains at mid-day

KUALA LUMPUR (March 9): The FBM KLCI remained in positive territory at the mid-day break on Friday as key regional markets extended their gains on improved sentiment on the back of a successful attempt by Greece to close the bond swap offer.

Greece' success in closing the bond swap offer enabled it to reduce its huge debt pile and avert a chaotic default that would pitch the euro zone into a fresh crisis, according to Reuters.

At the mid-day break, the KLCI added 1.55 points to 1,579.91, lifted by gains at select blue chips. Gainers led losers by 340 to 286 while, 312 counters traded unchanged. Volume was 714.59 million shares valued at RM546.47 million.

The ringgit strengthened 0.20% To 3.0044 versus the US dollar; crude palm oil futures for the third month delivery gained RM45 per tonne to RM3,337, crude oil rose 32 cents per barrel to US$106.90 while gold added US$5.18 an ounce to US$1,704.95.

At the regional markets, Japan’s Nikkei 225 rose 2.22% to 9,985.94, Hong Kong’s Hang Seng Index added 1.06% to 21,121.50, the Shanghai Composite Index rose 0.40% to 2,429.95, Taiwan's Taiex was up 0.34% to 8,011.59, South Korea’s Kospi rose 0.49% to 2,010.59 and Singapore’s Straits Times Index was up 0.44% to 2,983.41.

At Bursa Malaysia, gainers included BAT that rose 38 sen to RM52.40, Bonia 18 sen to RM2.48, Deleum 16 sen to RM2.20, KLK 14 sen to RM23.40, Tradewinds PLANTATION []s 13 sen to RM4.44, Press Metal and MBM Resources 11 sen each to RM2.09 and RM4.61, while Mercury and Johore Tin added nine sen each to 1.25 and RM1.23.

Naim Indah Corp was the most actively traded counter with 67.9 million shares done. The stock gained on sen to 64 sen.

Other actives included Sumatec, China Stationery, SILK Holdings, KeyWest, and Perisai .

Decliners included Petronas Dagangan and PPB which lost 12 sen each to RM18.24 and RM16.78, KAF, BLD Plantations and Far East down 10 sen each to RM1.80,RM9.35 and RM7.30 respectively. KLCC Property and Hong Leong Bank down eight sen each to RM3.34 and RM12.30.



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Markets gain on successful Greek bond swap

KUALA LUMPUR (March 9): Asian equity markets rose on Friday on improved sentiment on the back of successful attempt by Greece to close the bond swap offer on Thursday.

The bond swap offer was to reduce its huge debt pile and averting a chaotic default that would pitch the euro zone into a fresh crisis, according to Reuters.

BIMB Securities Research in a note Friday said that news on Thursday that Greece had managed to garner almost 90% of its bondholders to swap for new securities filtered through the market thus the broad based gains.

Improved employment outlook in the US provided further positive vibes thus pushing the DJI Average 71 points higher to above the 12,900 mark, it said.

“With Eurozone’s outlook on a stabilisation path, major European bourses ended up mostly in positive territory. “Regionally, there were across the board buying momentum pushing almost all Asian markets up.

“The FBM KLCI made minor inroads with a modest 3.53 point gain to hang around the 1,580 level. We expect the index to see more upside judging by the net inflow of foreign funds into the market over the past two weeks amounting to almost RM1.3bn and may surpass the immediate resistance of 1,585,” it said.

On Bursa Malaysia, the FBM KLCI edged up 2.67 points to 1,581.03 ay 10am, lifted by gains at select blue chips.

Gainers led losers by 234 to 128, while 246 counters traded unchanged. Volume was 339.49 million shares valued at RM196.50 million.

At the regional markets, Japan’s Nikkei 225 rose 1.03% to 9,869.78, Hong Kong’s Hang Seng Index added 0.33% to 20,970.30, the Shanghai Composite Index added 0.43% to 2430.73, Taiwan’s Taiex gained 0.37% to 8,013.72, South Korea’s Kospi was up 0.40% to 2,008.72 and Singapore’s Straits Times Index added 0.07% to 2,972.44.

Among the gainers on Bursa Malaysia, BAT rose 38 sen to RM52.40, Deleum 17 sen, Petronas Gas 14 sen to RM16.92, KLK 12 sen to RM23.38, CIMB, Tenaga and Johore Tin nine sen each to 7.35, 6.35 and RM1.22 respectively, CAB 6.5 sen to 44 sen while Astral Asia and Padini added six sen each to RM1.29 and RM1.54.

Naim Indah Corp was the most actively traded counter with 36.1 million shares done. The stock gained one sen to 64 sen.

Other actives included Sumatec, CSL, SILK Holdings, Olympia, KeyWest and HWGB.

Decliners included Dutch Lady, Petronas Dagangan, Fat East, PPB, Lafarge Malayan Cement, Quality Concrete, Brahim's and Iretex.



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Stocks to watch: Pantech, MISC, EngTek, Johore Tin, MAHB

KUALA LUMPUR (March 9): Malaysian stocks could take the cue from positive sentiment across global markets on Friday as investors pinned their hopes that Greece’s sovereign debt woes will be contained. Markets could also find support from the anticipation of better employment numbers in the US.

Private holders of Greek government bonds have until Thursday night (March 8) to voluntarily swap their bonds for new ones. The swap is vital to help Greece to obtain bailout funds, without which the country may default on its debt obligations this month.

Reuters reported that as of Wednesday, major banks and pension funds, accounting some 40% of Greece's outstanding bonds, has participated the in the swap, raising hopes that the country could avert a default. US policymakers are expected to announce on Friday, a rise of 210,000 jobs in the country’s non-farm payrolls. This could boost sentiment among Asian exporting nations.

Japan stole the limelight on Thursday when it announced that its gross domestic product contracted by an annualized 0.4%, less than the 2.3% contraction estimated earlier.

Key regional markets racked up gains of up to more than 2% on Thursday, as investors’ sentiment was boosted by hopes that Greece could avert a default and positive news on the US economy.

However, the FBM KLCI lagged the regional markets and managed to close up only 3.53 points or 0.22% to 1,578.36, after falling 15.08 points – the worst loss for this year – on Wednesday

Stocks to watch on Friday include PANTECH GROUP HOLDINGS BHD [], MISC BHD [], ENG TEKNOLOGI HOLDINGS BHD [], JOHORE TIN BHD [], and Malaysia Airports Holdings Bhd (MAHB)

Pantech, a pipes, fittings and flow controls solutions provider, has acquired the entire stake in UK-based Nautic Steels (Holdings) Ltd for GBP9.5 million or RM45.46 million. Pantech said on Thursday the acquisition will help the company expand its geographical presence and product range. Pantech shares rose 1.5 sen to close at 54 sen.

Moody's Investors Service had on Thursday downgraded credit ratings of MISC Bhd to Baa2 from Baa1. The outlook on the ratings remains negative. According to Moody’s, the downgrade reflects MISC’s weaker earnings amid excess capacity which could stifle the shipping firm’s profitability.

Moody’s is also mindful of MISC’s substantial capital needs requiring additional debt funding, which will lead to higher debt leverage and negative cash flow in the short to medium term. MISC shares closed five sen down to RM5.32

Meanwhile, founders and major shareholders of Eng Teknologi Holdings Bhd who are in the midst of privatising the hard disk drive component maker, say they are still in talks with financiers on the funding dynamics for the acquisition, and that the outcome could result in a lower offer price for the proposed takeover. Eng Teknologi finished at RM1.78, down one sen.

Meanwhile, OSK Research said Johore Tin shares are trading at attractive valuations with a low market capitalisation of RM75.6 million, hence, the possibility of the company being an acquisition target. OSK maintained its buy call for Johore Tin with a fair value of RM1.51. Johore Tin added six sen to RM1.14.

Malaysia Airports Holdings Bhd (MAHB) has fixed the price of its recently announced private placement of up to110 million new shares at RM5.60. This translates into gross proceeds of RM616 million, MAHB said MAHB shares declined three sen to RM5.62.



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