KLCI reverses gains, slips into negative territory

KUALA LUMPUR (March 26): The FBM KLCI slipped and closed in negative territory on Monday in line with most of the key regional markets that reversed their earlier gains and fell in later trade, extending losses after weak PMI reports last week stoked fears that China's economy was slowing and the euro zone is sliding into recession.

The FBM KLCI fell 2.85 points to close at 1,582.98, weighed by losses at index-linked PLANTATION [] stocks and select blue chips including Tenaga and MISC.

At the regional markets, Taiwan’s Taiex lost 1.35% to 7,967.62, South Korea’s Kospi fell 0.38% to 2,019.19, Singapore’s Straits Times Index xx, while Japan’s Nikkei 225 gained 0.07% to 10,018.24, the Shanghai Composite Index added 0.05% to 2,350.690 and Hong Kong’s Hang Seng index closed flat at 20,0668.86.

Meanwhile, European shares rose on Monday in a technical bounce, after recording their steepest weekly loss since the start of the year, as investors searched for bargains and positioned themselves for a potential strong German Ifo figure.

On Bursa Malaysia, Carlsberg was the top loser and fell 26 sen to RM10.20, Jaya Tiasa 22 seen to RM8.08, Chin teck Plantations fell 20 sen to RM9.10, Warisan down 19 sen to RM2.41, Tenaga lost 18 sen to RM6.50, JT International and Litrak lost 16 sen each to RM6.60 and RM3.94, Far East 15 sen to RM7.40 while AirAsia fell 13 sen to RM3.46.

Among plantations, Genting Plantations lost 22 sen to RM9.25, while KLK and IOI Corp fell four sen each to RM23.86 and RM5.34.

Among the gainers, Dutch Lady added 42 sen to RM31.40, SMPC up 28 sen to RM1.84, Aeon 25 sen to RM9.40, BAT 20 sen to RM54, Supercomnet added 19.5 sen to 49.5 sen, PUC and Hartalega 14 sen each to 29 sen and RM8.09, Unisem 13 sen to RM1.46, HLFG 12 sen to RM12.12 while Malayan Flour Mills was up 11 sen to RM4.44.

The actives included Focus, metronic, Supercomnet, Ariantec, Naim Indah Corp, Flonic and Karambunai.



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KLCI edges higher, lifted by bank stocks

KUALA LUMPUR (March 22): The FBM KLCI closed marginally higher on Wednesday, lifted by gains at select blue chips including Maybank, Public Bank, KLK, and BAT while trading volume surged to nearly 3.6 billion shares.

The 30-stock index rose 4.91 points to close at 1,582.53. Gainers beat losers by 384 to 339, while 270 counters traded unchanged. Volume was 3.59 billion shares valued RM1.79 billion following heavy transactions in penny stocks.

However, Asian shares eased on March, as concerns about China's slowing economy dampened the optimism generated by a brightening outlook for the U.S. economy that has been pushing equity markets higher since late last year, according to Reuters.

But financial spreadbetters predicted major European markets, it said.

At the regional markets, Japan’s Nikkei 225 fell 0.55% to 10.086.49, Hong Kong’s Hang Seng Index shed 0.15% to 20,856.63, South Korea’s Kospi lost 0.73% to 2,027.23, while the Shanghai Composite Index gained 0.06% to 2,378.20 and Taiwan’s Taiex rose 0.12% to 7,981.94.

Meanwhile, European stock index futures signalled gains on Wednesday, with stocks set to bounce back from the previous session's pull-back as investors bet U.S. housing data will give further evidence of economic recovery, eclipsing recent worries over Chinese growth, it said.

Among the gainers on Bursa Malaysia, BAT added 78 sen to RM53.20, PPB up 22 sen to RM16.78, Lafarge Malayan Cement, Sarawak Oil Palms and JTI up 17 sen each to RM7.25, RM6.70 and RM6.86 respectively.

Far East and Cepco added 15 sen each to RM7.40 and RM1.80, Metronic 14.5 sen to 25.5 sen, Tasco 12 sen to RM2.14 while Public Bank and KLK up two sen each to RM13.64 and RM23.43, while Maybank added one sento RM8.74.

Metronic was the most actively traded counter with 845.6 million shares done.

Other actives included Ariantec, Ingenuity Solutions, Focus, Tiger Synergy, Hubline, Asia-Bio, and Naim Indah Corp.

Decliners included Hartalega, Aeon Credit, Litrak, GAB, Gamuda, Kluang, United Malacca, SPMC, Allianz and MSM.



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KLCI struggles, key regional markets advance

KUALA LUMPUR (Feb 28): Blue chips closed lower on Tuesday, weighed down by losses in Petronas Chemicals, Axiata and Tenaga, as the FBM KLCI struggled to breach the 1,560 level, in contrast with the firmer key regional markets.

The 30-stock KLCI closed down 2.31 points or 0.15% lower at 1,556.73 from a high of 1,562.42. Turnover was 1.73 billion shares valued at RM1.589 billion. Losers beat gainers 511 to 309, while 309 counters were traded unchanged.

The performance of the local stock market was a contrast to the positive sentiment at the key regional markets.

Shanghai's Composite Index rose 0.20% to 2,451.86, Hong Kong's Hang Seng 1.65% to 21,568.73, Japan's Nikkei 225 up 0.92% to 9,722.52, Singapore's Straits Index 0.73% to 2,968.27, South Korea's Kospi 0.63% to 2,003.69 and Taiwan’s Taiex 0.28% to 7,959.34.

Reuters reported that the European Central Bank's upcoming cash boost for banks supported the euro and shares but some investors are worried the benefits of the cheap money will be short lived.

At Bursa Malaysia, Petronas Chemicals fell 10 sen to RM6.80, dragging the KLCI down 1.01 points and Axiata shed five sen to RM5.10, pushing the KLCI down by one point. Losses in TNB, where the power giant’s share price fell five sen to RM6.30, shaved 0.64 of a point of the index.

Tenaga president and CEO Datuk Seri Che Khalib Mohamad Noh said he expected the power giant to perform better in the second quarter ended Feb 29, 2012 as it would receive RM2 billion in compensation from Petroliam Nasional Bhd and the government under a fuel cost-sharing mechanism.

Losers included JTI, down 25 sen to RM6.91 as investors were disappointed over the absence of a dividend payout. Sarawak Oil Palm fell 17 sen to RM6.

China Stationery Limited continued its strong performance post-IPO to be one of the most active and among top gainers after closing up 16 sen to RM1.39, with 84.98 million shares traded in.

Dutch Lady rose RM1.48 to RM28.98, Atlan 32 sen to RM3.47, Hong Leong Industries up 21 sen to RM4.20 while Hong Leong Bank and Carlsberg added 20 sen to RM11.90 and RM9.90 respectively.



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JTI slumps in absence of special dividend

KUALA LUMPUR (Feb 28): Shares of JT International were the top loser on Tuesday as investors were disappointed the cigarette manufacturer and distributor did not declare any special dividends.

At 9.53am, JTI was down 24 sen to RM6.92. There were 51,800 shares done.

The FBM KLCI shed 0.66 of a point to 1,558.38. Turnover was 316.56 million shares done valued at RM209.70 million. There were 200 gainers, 240 losers and 241 stocks unchanged.

CIMB Equities Research said it was disappointed with the absence of a special dividend as JTI’s cash continued to build up, rising 37% on-quarter to RM260 million, close to the RM265 million to RM290 million level when it last paid a special dividend amounting to 103 sen

In its analysis, the research house said a jump in marketing cost and other operating costs stubbed out JTI’s ability to meet FY11 forecasts. It has a Neutral outlook on JTI with a target price of RM7.50.



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KLCI in the red in early trade, PetChem, Tenaga weigh

KUALA LUMPUR (Feb 28): Blue chips slipped in early trade on Tuesday, weighed down by losses in Petronas Chemicals (PetChem) and TENAGA NASIONAL BHD [].

At 9.31am, the FBM KLCI was down 0.08 of a point to 1,558.96. Turnover was 187.10 million shares valued at RM140 million. Losers led gainers 164 to 171 with 218 counters unchanged.

Reuters reported that regional markets consolidated on Tuesday as investors remained wary of the impact from high oil prices on growth and hoped the European Central Bank's upcoming second liquidity injection will support sentiment and revive risk appetite.

CIMB Equities Research said in its technical outlook for the market said while prices edged up on Monday, t the buying momentum could not be sustained.

“Market breath continued to be weak as it has been for the whole of last week. The 1,566 high still stands and so is our bearish outlook. The 1,550 key support levels is still a level to keep watch as it would eliminate all bullish potential if it is breached.

“The wedge support is now at 1,542 and a break below would be detrimental for the medium and long term outlook. The upside is likely capped around the next resistance at 1,570-1,575 even if the 1,566 is taken out. The scale is tipping towards the bears,” said CIMB Research.

Among the decliners were JT International, down 21 sen to RM6.95, F&N 16 sen to RM17.80, Oriental Holdings 14 sen to RM6.10 and WCT six sen to RM2.65. PetChem fell nine sen to RM6.81 and Tenaga six sen lower at RM6.19.



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KLCI slips below 1,515-level at mid-day, select blue chips weigh

KUALA LUMPUR (Jan 31): The FBM KLCI slipped to below the 1,515-point level at the mid-day break on Tuesday, weighed by losses at select blue chips including Tenaga and PLANTATION []-related stocks.

The FBM KLCI fell 2.24 points to 1,511.31 at the mid-day break. Market breadth turned negative with losers leading gainers by 418 to 263, while 329 counters traded unchanged. Volume was 829.67 million shares valued at RM768.79 million.

The ringgit strengthened 0.43% to 3.0468 versus the US dollar; crude palm oil futures for the third month delivery fell RM19 per tonne to RM3,063, crude oil added 58 cents to US$99.36 while gold rose US$5.10 an ounce to US$1,735.18.

Meanwhile, Asian shares and the euro recovered earlier losses on Tuesday after Greek Prime Minister Lucas Papademos raised hopes for a deal to be reached this week to avoid a default, but markets were starting to worry that Portugal might need a second rescue, according to Reuters.

Japan’s Nikkei 225 added 0.40% to 8,827.91, Hong Kong’s Hang Seng Index was up 0.71% to 20,304.40, the Shanghai Composite Index gained 0.19% to 2,289.43, Taiwan’s Taiex added 0.24% to 7,425.48, South Korea’s Kospi was up 0.46% to 1,949.42, but Singapore’s Straits Times Index shed 0.40% to 2,876.84.

On Bursa Malaysia, BAT fell 54 sen to RM48.84, Hong Leong Bank 18 sen to RM11.32, MPI 17 sen to RM3.51, Asia File and Advanced Packaging 14 sen each to RM3.56 and RM1.18, JT International and Perstima 12 sen each to RM6.83 and RM3.78, Lafarge Malayan Cement 11 sen to RM6.67, Tenaga 10 sen to RM5.87 and Ta Ann nine sen to RM5.67.

Among plantation-related stocks, KLK fell six sen to RM25.66, while IOI Corp and Batu Kawan shed four sen each to RM5.36 and RM19.20.

Gainers included Glenealy, Malayan Flour Mills, Fima Corp, GAB, Coastal Contracts, Maxis, Mudajaya, Triplc, BLD Plantations and Shell, while the actives included DRB-Hicom, DBE Gurney, Axiata, TMS and DGSB.



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KLCI ends year with a bang, posts YTD gain of 0.78%

KUALA LUMPUR (Dec 30): The FBM KLCI ended a volatile 2011 on a high note, as late buying into banking and key blue chips saw the index reversing its earlier losses to register a 0.78% year-to-date gain.

Regional markets, with the exception of Indonesia and the Philippines ended their year in losses, as lingering concerns over the eurozone debt crisis and heightened worries about the global economy kept investors on the sidelines.

The FBM KLCI jumped 1.6% or 24.04 points to close at 1,530.73. However, this is still ways off its all-time high of 1,597.08 on July 11 this year.

Gainers led losers by 468 to 327, while 336 counters traded unchanged. Volume was 1.33 billion shares valued at RM1.53 billion.

At the regional markets, the Shanghai Composite Index rose 1.19% to 2,199.42, Japan’s Nikkei 225 increased 0.67% to 8,455.35, Hong Kong’s Hang Seng Index added 0.20% to 18,434.39, while Taiwan’s Taiex fell 2.74% to 7,072.08 and Singapore’s Straits Times Index lost 0.99% to 2,646.35.

On Bursa Malaysia, Petronas Dagangan rose 50 sen to RM17.80, BAT 32 sen to RM49.92, JT International added 24 sen to RM7.39, Nestle and Sime Darby added 20 sen each to RM56.20 and RM9.20.

Among the banking stocks, CIMB jumped 28 sen to RM7.44, Maybank 26 sen to RM8.58, Public Bank 20 sen to RM13.38, RHB Capital 18 sen to RM7.48, HLFG 10 sen to RM11.66 and Hong Leong Bank up two sen to RM10.90.

Decliners included AIC that fell 15 sen to RM1.15, DKSH and Wah Seong down nine sen each to RM1.56 and RM2.07, Paragon and Esso eight sen each to 24 sen and RM3.54, while Tan Chong lost seven sen to RM4.08.

The actives included Utopia, Mulpha, KFCH, Wijaya, Coastal, Mah Sing and Sanichi.



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KLCI rises for third day, but gains limited

KUALA LUMPUR (Dec 29): The FBM KLCI rose for the third day on Thursday and closed above the 1,500-point level, as the slight recovery at most regional markets and bargain hunting activities lifted the local bourse.

The FBM KLCI closed 2.58 points higher at 1,506.69.

Gainers led losers by 492 to 254, while 335 counters traded unchanged. Volume was 1.59 billion shares valued at RM1.16 billion.

At the regional markets, the Shanghai Composite Index rose 0.16% to 2,173.56, Taiwan’s Taiex gained 0.26% to 7,074.82, South Korea’s Kospi added 0.03% to 1,825.74 and Singapore’s Straits Times Index edged up 0.24% to 2,672.78.

Hong Kong’s Hang Seng Index fell 0.65% to 18,397.92 and Japan’s Nikkei 225 shed 0.29% to 8.398.89.

Meanwhile, European shares rose on Thursday in low volume, recovering from the previous session falls, on hope there would be demand at an Italian auction of long-term sovereign debt after the European Central Bank's three-year funding operation last week, according to Reuters.

On Bursa Malaysia, BAT rose 40 sen to RM49.60, RCI added 33 sen to RM1.80, Cocoaland gained 18 sen to RM2.18, RHB Capital and Sarawak Oil Palms added 17 sen each to RM7.30 and RM5.59, Panasonic gained 16 sen to RM20.02, JT International and Faber rose 15 sen each to RM7.15 and RM1.62, while Batu Kawan gained 14 sen to RM17.44.

Among the decliners, Nestle fell 70 sen to RM56, Box-Pak lost 24 sen to RM2.23, Chin Teck down 20 sen to RM8.79, Southern Acids and Tasek fell 15 sen each to RM2.15 and RM7.80, HLFG lost 12 sen to RM11.56, Perduren fell 10.5 sen 74.5 sen, while UMW and Supermax lost 10 sen each to RM6.85 and RM3.79.

Utopia was the most actively traded counter with 197.45 million shares done. The stock fell one sen to 6.5 sen.

Other actively traded stocks included Sanichi, Mulpha, JCY, KNM, Flonic and LFE Corp.



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Good prospect of higher dividends from JTI

Even as we approach the last week of the year, the outlook for the market going into 2012 remains hazy. Uncertainties persist over the eurozone sovereign debt crisis and its impact on the global economy. Against this backdrop, volatility is likely here to stay for some time yet.

As such, we suspect a good number of investors will likely retain a high percentage of cash in their portfolios pending greater clarity. Staying on the sidelines now will also allow investors to take advantage of any major market selloff in the coming months should global financial events take a turn for the worst. For others who are risk-averse but still keen to stay in the market, defensive stocks with higher than market average yields appear to be the preferred option. And they have been rewarded.

Case in point, the special dividend of 60 sen per share announced by Guinness Anchor Bhd (GAB) earlier this month sent its stock price sharply higher. For the year-to-date, its shares have outperformed the FBM KLCI by some distance — gaining more than 35% compared with the benchmark index’s 1.5% decline (up till last Friday).

GAB is sitting on a pile of cash and will distribute part of the money back to shareholders after taking into account the limited opportunity for expansion as well as any fresh acquisitions. Taking on some debt and shrinking shareholders’ funds will enhance the company’s return on equity. GAB’s bumper dividend also shines a spotlight on other similarly cash-rich companies with relatively steady cash flow from operations which could potentially mimic such a move.

JT International Bhd (JTI), we believe, may be a good example. The cigarette manufacturer had cash totalling nearly RM190 million as at end-September and no borrowings.

Minimal capex frees up cash flow for distribution
We do not expect any major capital expansion plans in the near to medium term given the challenging outlook for the industry. Total industry volume sales have fallen for seven straight years since 2003. In the first nine months of this year, volume sales for duty-paid cigarettes contracted by a further 3% year-on-year (y-o-y). The decline is due primarily to the annual tax hikes and resulting increases in selling prices as well as the rise in illicit trade.

The trade in illegal cigarettes in the country now stands at about 37.3%.

Positively, sales may regain some traction in 4Q11, in the absence of an additional tax hike in Budget 2012. But total volume sales growth for the year is likely to remain in the red.

Thus, with minimal capex expected, JTI may well decide to return part of its cash to shareholders. Its track record is supportive of such a move.

Sitting on a rising pile of cash
In 2007 and 2008, JTI paid special dividends of 15 sen and 28 sen per share, in addition to the “regular” annual gross dividends of 30 sen per share. In 2009, the company made a 75 sen per share capital repayment.

There was no special dividend in 2010, most likely in view of the bumper payout in the previous year. Its cash dropped to RM125 million at end-2009, from RM267 million at end-2008, but has since been rising anew. Therefore, there is a good chance that total dividends this year will improve over the 30 sen per share paid in 2010.

JTI has already paid gross dividends totalling 30 sen per share in 1H11. We believe there could be one more round of dividends for 4Q11. Assuming a final dividend of 15 sen per share, net yield will total 4.9% for the year at the prevailing share price of RM6.90.

The estimated total dividends of 45 sen per share would be equivalent to a profit payout of roughly 68% based on our earnings forecast. We believe this is a fairly conservative payout ratio given the company’s cash position and expected cash flow from operations. There is certainly room for surprises on the upside.

Earnings expected to remain resilient
Despite declining volume sales, JTI’s earnings have trended higher — growing at an annual compound rate of just under 10% from 2003 to 2010. This is attributed to higher selling prices and various cost rationalisation exercises. Hence, we expect earnings and cash flow will remain fairly resilient.

The company reported a relatively solid set of earnings results for 3Q11. Turnover was up 6% y-o-y while net profit expanded by 13.1% to RM39.8 million. This brings net earnings for the first nine months of the year to RM104.7 million, down by just about 1.6% from the previous corresponding period.

For the full year, we estimate net profit of RM130.5 million, slightly lower than the RM133.8 million in 2010, but this will improve to RM138.9 million in 2012. Industry volume sales outlook is more positive in the absence of an additional tax hike this year.

Based on our forecast earnings, the stock is trading at fairly attractive valuations of roughly 13 times 2012 — compared with that of British American Tobacco (M) Bhd. Assuming total dividends of 50 sen per share next year, investors will earn a net yield of 5.4%.


Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.


This article appeared in The Edge Financial Daily, December 28, 2011.



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Asian markets ease ahead of US data, KLCI pares down losses

KUALA LUMPUR (Dec 27): Asian markets were mostly in negative territory at mid-day on Tuesday, ahead of home prices and consumer confidence data set to be released later in the day in the US.

The FBM KLCI was down 1.34 points to 1,494.81 at the mid-day break.

Losers beat gainers by 301 to 257, while 293 counters traded unchanged. Volume was 445.83 million shares valued at RM232.02 million.

The ringgit weakened 0.37% to 3.1592 versus the US dollar; crude palm oil futures for the third month delivery fell RM22 per tonne to RM3,148, crude oil added eight cents per barrel to US$99.76 while gold fell US$12.07 an ounce to US$1,594.88.

At the regional markets, Japan’s Nikkei 225 was down 0.43% to 8,442.73, South Korea’s Kospi fell 1.02% to 1,837.84, Taiwan’s Taiex lost 0.48% to 7,058.71 and Singapore’s Straits Times Index shed 0.15% to 2,672.54.

The Shanghai Composite Index edged up 0.05% to 2,191.23 while European and some Asian markets, including Hong Kong and Australia, were closed on Tuesday.

On Bursa Malaysia, Y&G fell 28.5 sen to 68 sen, BAT and Dutch Lady lost 20 sen each to RM49 and RM23.16, JT International and Hong Leong Bank down 12 sen each to RM6.87 and RM10.82, Petronas Dagangan 10 sen to RM17.20 while Petra Energy and EKIB was down eight sen each to RM1.05 and 46 sen.

Among the gainers, Boxpak rose 29 sen to RM2.14, KLK 26 sen to RM22.46, F&N 20 sen to RM18.20, AIC and Top Glove 12 sen each to RM1.30 and RM4.86, Kretam, Far East and Ta Ann added 10 sen each to RM2.50, RM7.15 and RM5.15 respectively, while Nestle and BLD PLANTATION []s gained eight sen each to RM56.68 and RM7.20.

The actives included MBF Holdings warrants, Proton, Karambunai, Astral Supreme and Sanichi.



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KLCI kicks off year’s final trading week on tepid note

KUALA LUMPUR (Dec 27): The FBM KLCI started the final trading week of the year on a weaker note and fell 4.61 points to 1,491.54 at mid-morning, weighed by select blue chips.

Losers led gainers by 179 to 174, while 194 counters traded unchanged. Volume was 176.78 million shares valued at RM66.23 million.

Asian shares were steady on Tuesday in thin volume as investors took to the sidelines before U.S. markets reopen later in the day from a long weekend and data which could offer clues over growth prospects in the world's largest economy, according to Reuters.

European and some Asian markets, including Hong Kong and Australia, were closed on Tuesday, it said.

At the regional markets, Japan’s Nikkei 225 fell 0.52% to 8,435.63, the Shanghai Composite Index shed 0.06% to 2,188.82, Taiwan’s Taiex lost 0.52% to 7,055.82, South Korea’s Kospi fell 0.74% to 1,843.03 and Singapore’s Straits Times was down 0.26% to 1,492.21.

BIMB Securities Research in a note Dec 27 said the Eurozone enjoyed a temporary reprieve as traders and investors alike were in holiday mood ahead of Christmas and 2012, adding that global equities continued with their uptick as European bourses have all registered positive gains.

Buoyed by improved US economic outlook and absence of nasty news, the Dow Jones Industrial Average jumped 124 points to close at almost 12,300, it said.

However, the research house said that surprisingly, the feel good factor did not entirely cascade down to Asian bourses as the region markets ended rather mixed.

“As for Malaysia, the FBMKLCI continued with its uptrend and is within touching distant of the 1,500 mark.

“We reckon trading would be lacklustre over the next few days and will be interesting to see if the benchmark index is able to break the psychological 1,500 looking forward. We are sticking our necks out that it will,” it said.

On Bursa Malaysia, BAT was the top loser at mid-morning and was down 20 sen to RM49; PPB fell 18 sen to RM16.80, Genting PLANTATION []s down 16 sen to RM8.25, JT International 13 sen to RM6.86, Petra Energy and Hong Leong Bank fell eight sen each to RM1.05 and RM10.86, Harvest Court seven sen to RM1.06 while Daibochi and Shangri-La fell six sen each to RM2.58 and RM2.38.

Gainers included Nestle, HLFG, AIC, TDM, F&N. GAB, United Plantations, Kretam and Boustead, while the actives included Proton, Vastalux, Marco, Envair and Utopia.



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Asian markets stay in the black but pare down some gains

KUALA LUMPUR (Dec 21): Asian markets stayed in the black on Wednesday on upbeat mood as China and Taiwan upped the ante to support their respective stock markets, while encouraging US and German data and strong demand for Spanish debt tempered risk-aversion.

However, some of the indices pared down their gains as Japan exports fell at their fastest annual pace in six months in November as a strong yen, the Eurozone debt crisis and a slowdown in emerging economies weighed on overseas demand.

The FBM KLCI was up 16.14 points to 1,481.31 at the mid-day break, lifted by gains including at Genting and banking stocks.

Gainers led losers by 361 to 226, while 308 counters traded unchanged. Volume was 824.31 million shares valued at RM535.75 million.

The ringgit strengthened 0.40% to 3.1684 versus the US dollar; crude palm oil futures for the third month delivery rose RM18 per tonne to RM3,038, crude oil added 50 cents to US$97.74 and gold gained US$8.22 an ounce to US$1,624.13.

At the regional markets, Japan’s Nikkei was up 1.28% to 8,443.56, Hong Kong’s Hong Seng Index added 1.6% to 18,368.66, the Shanghai Composite Index edged up 0.24% to 2,221.14, Taiwan’s Taiex jumped 4.23% to 6,944.65, South Korea’s Kospi gained 3.10% to 1,848.56 and Singapore’s Straits Times Index was up 1.52% to 2,654.17.

On Bursa Malaysia, PPB and Genting rose 28 sen each to RM16.98 and RM10.64, BAT up 24 sen to RM48.24, KAF 23 sen to RM1.71, HLFG 20 sen to RM11.62, Public Bank 16 sen to RM13.16, Fima Corp and AMMB 15 sen each to RM5.90 and RM5.85, while F&N was up 14 sen to RM18.08.

Among the decliners, Batu Kawan fell 20 sen to RM17, JT International 14 sen to RM6.86, MPI 11 sen to RM2.62, Nestle 10 sen to RM56.20, Uzma and IGB nine sen each to RM1.61 and RM2.33, Ho Hup 6.5 sen to 62.5 sen and Vastalux 6.5 sen to 2 sen.

The actives included Utopia, TMS, Maxbiz, JCY, Vastalux, Focus and Nova MSC.



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N. Korean leader’s death rattles Asian mkts, but KLCI only slightly affected

KUALA LUMPUR (Dec 19): The death of North Korea’s leader Kim Jong-il that was announced by the reclusive republic’s state television on Monday rattled already jittery Asian markets worried over the eurozone debt crisis.

Seoul shares extended their fall to nearly 5% on Monday after North Korea's state television reported that North Korean leader Kim Jong-il had died on Saturday, according to Reuters.

Trading on Bursa Malaysia was also choppy with the FBM KLCI struggling to stay in positive territory. At the mid-day break, the FBM KLCI was down 0.93 point to 1,465.39. Market breadth was negative with 403 losers and 201 gainers, while 249 counters traded unchanged. Volume was 886.79 million shares valued at RM458.08 million.

The ringgit weakened 0.05% to 3.1793; crude palm oil futures for the third month delivery rose RM6 per tonne to RM2,990, crude oil shed 63 cents per barrel to US$92.90 and gold lost US$10.25 an ounce to US$1,588.70.

At the regional markets, South Korea’s Kospi fell 3.54% to 1,774.81, the Shanghai Composite Index lost 2.57% to 2,167.68, Hong Kong’s Hang Seng Index down 2.47% to 17,833.42, Taiwan’s Taiex lost 2.03% to 6,647.26, Singapore’s Straits Times Index fell 1.65% to 2,615.26 and Japan’s Nikkei 225 shed 1.12% to 8,307.81.

On Bursa Malaysia, Dutch Lady fell 78 sen to RM23.66, F&N lost 36 sen to RM18, Carlsberg 27 sen to RM8.39, KrisAssets and Batu Kawan fell 26 sen to RM5.62 and RM17.10, LPI Capital and GAB fell 20 sen each to RM13.20 each respectively, while JT International and United PLANTATION []s lost 16 sen each to RM6.78 and RM18.34.

Utopia was the most actively traded counter with 69.97 million shares done. The stock rose 1.5 sen to 11.5 sen.

Other actives included Wijaya, JCY, Versatile, Flonic, Kurnia Asia and Boustead.

Gainers at mid-day included Nestle, Amway, Petronas Gas, Boustead, Far East, NSOP, Gamuda, Perstima, KLK and Suiwah.



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Asian markets fall on Eurozone fears, KLCI snaps winning streak

KUALA LUMPUR (Dec 19): The FBM KLCI snapped its positive run on Monday, in line with the fall at key regional markets, on worries that credit ratings downgrades of some European countries could hamper any progress towards resolving the region’s debt crisis.

At mid-morning, the FBM KLCI fell 0.60 point to 1,465.62.

Losers edged gainers by 194 to 170, while 196 counters traded unchanged. Volume was 402.72 million shares valued at RM185.43 million.

Asian stocks fell on Monday on fears possible credit ratings downgrades of several European countries could derail progress towards resolving the euro zone's debt crisis, while the euro steadied after its worst weekly performance in three months, according to Reuters.

At the regional markets, Japan’s Nikkei 225 fell 0.83% to 8,332.07, Hong Kong’s Hang Seng Index lost 1.63% to 17,986.54, the Shanghai Composite Index was down 1.53% to 2,190.89, Taiwan’s Taiex fell 1.74% to 6,667.36, Singapore’s Straits Times Index was down 1.54% 2,618.31 and South Korea’s Kospi lost 2.42% to 1,795.35.

Fitch Ratings had warned on Friday it may downgrade France and six other euro zone countries, saying a comprehensive solution to the region's debt crisis was "technically and politically beyond reach".

Fitch also revised the outlook on France's top-notch rating to negative, saying the downgrade was not imminent but could come in two years.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Monday said the local market remained mildly positive despite the volatile global markets last week.

Some local institutional blue chip buying on Thursday and Friday led the index up in fairly lack lustre trading, he said.

The weaker support areas for the FBM KLCI are in the 1,424 to 1,460-zone. The next resistance levels of 1,466 and 1,511 will see heavy liquidation activities, he said.

Lee said the tone of the global indices was still unstable and that Eurozone worries on how to tame their debt crisis persisted, with Fitch stating that a comprehensive deal was “beyond reach”.

“There could still be inherent price volatility in the next week before the global markets wind-down for the Christmas and New Year holidays in late December,” he said.

Among the decliners at mid-morning, Carlsberg fell 20 sen to RM8.46, JT International lost 18 sen to RM6.76, JobStreet was down 15 sen to RM2.35, LPI Capital and F&N down 10 sen each to RM13.30 and RM18.26, Hartalega lost nine sen to RM5.52, while CCM, Keck Seng and Batu Kawan lost eight sen each to RM1.57, RM4 and RM17.28 respectively.

Meanwhile, gainers included BAT, Nestle, Amway, Bosutead, BHIC, Far East, SOP, Pintaras and Gamuda.

The actives included Wijaya, Boustead, Versatile, JCY and Utopia.



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KLCI in the black mid-day, gains limited

KUALA LUMPUR (Dec 16): The FBM KLCI remained in positive territory at the mid-day break on Friday in line with the gains at key regional markets, but gains were limited as sentiment stayed brittle with possible cuts in the credit ratings of euro zone countries.

Further compounding the already worried investors was Fitch Ratings’ downgrade of Goldman Sachs, Deutsche Bank and five other large banks based in Europe and the United States, citing "increased challenges" in the financial markets.

The FBM KLCI added 3.01 points to 1,467.12 at the mid-day break, lifted by PLANTATION []s and select blue chips.

Gainers led losers by 324 to 291, while 274 counters traded unchanged. Volume was 974.25 million shares valued at RM555.68 million.

The ringgit strengthened 0.25% to 3.1788 versus the US dollar; crude palm oil futures for the third month delivery rose RM29 per tonne to RM3,000, crude oil added 28 cents per barrel to US$94.15 while gold jumped US$18.13 an ounce to US$1,588.65.

At the regional markets, Japan’s Nikkei 225 added 0.51% to 8,420.30, Hong Kong’s Hang Seng Index rose 0.61% to 18,136.23, the Shanghai Composite Index edged up 0.01% to 2,181.22, Taiwan’s Taiex added 0.64% to 6,807.80, South Korea’s Kospi rose 0.82% to 1,834.01 and Singapore’s Straits Times Index was up 0.48% to 2,647.85.

On Bursa Malaysia, PPB was up 26 sen to RM16.66, Sungei Bagan and KLK up 16 sen each to RM2.98 and RM22.28, while United Plantations gained 12 sen to RM18.52.

Other gainers included Orient that rose 21 sen to RM5.35, Jaya Tiasa up 19 sen to RM7.10, Dialog 14 sen to RM2.58, Nestle 12 sen to RM56.14 and BHIC up 11 sen to RM3.09.

UMW was the top loser and fell 35 sen to RM6.49 after the company on Thursday said it was not in talks to by Khazanah’s stake 42.7% stake in PROTON HOLDINGS BHD [].

Other losers included Carlsberg that fell 19 sen to RM8.80, Southern Acids down 17 sen to RM2.15, Panasonic and JT International 14 sen each to RM19.90 and RM6.86, GAB 12 sen to RM13.38, Malayan Flour Mills 11 sen to RM7.56 and Advanced Packaging nine sen to RM1.13.

Meanwhile, the actives included Proton, JCY, Kurnia Asia, Sanichi and Wijaya.



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KLCI closes lower but narrows losses

KUALA LUMPUR (Dec 13): The FBM KLCI narrowed its losses on Tuesday, but investor sentiment across the region remained jittery as the Eurozone debt crisis and fear of credit downgrades in that region kept investors on the sidelines.

The FBM KLCI close 1.71 points lower at 1,465.39. The index had earlier fallen to its intra-morning low of 1,457.31.

Losers edged gainers by 386 to 344, while 315 counters traded unchanged. Volume was 1.83 billion shares valued at RM1.39 billion.

Meanwhile, European shares rose on Tuesday as investors bought up beaten-down stocks following sharp falls on Monday after a plan outlined at last week's EU summit for stricter budget rules failed to ease worries about the region's debt crisis, according to Reuters.

Gains, however, are likely to be short-lived on concern about credit downgrades after Moody's Investors Service said its ratings for all EU member states would be reviewed in the first quarter of 2012 as well as eight Spanish banks, it said.

Also, market activity is likely to be subdued ahead of the release of US retail sales for November due out later and the outcome of the Federal Reserve's FOMC meeting, though no change in U.S. interest rates is expected, it said.

At the regional markets, the Shanghai Composite Index fell 1.87% to 2,248.59, South Korea’s Kospi lost 1.88% to 1,864.06, Japan’s Nikkei was down 1.17% to 3,292.79, Taiwan’s Taiex lost 0.76% to 6,896.31, Hong Kong’s Hang Seng Index fell 0.69% to 18,447.17 and Singapore’s Straits Times Index.

On Bursa Malaysia, JobStreet was the top loser and fell 28 sen to RM2.50; PPB lost 24 sen to RM16.36, NSOP down 20 sen to RM5.36, Genting 19 sen to RM10.64, Guan Chong 15 sen to RM2.15, DKSH 14 sen to RM1.59, Sungei Bagan and Genting PLANTATION []s 13 sen each to RM2.82 and RM8.15, while MISC was down 12 sen to RM5.48.

Sanichi was the most actively traded counter with 170.3 million shares done. The stock added 5.5 sen to 23 sen.

Other actives included Utopia, Proton, warrants of MAS, BIMB, MBSB and Affin respectively.

Among the gainers, BAT added RM1.50 to RM48.70, GAB and KLK up 70 sen each to RM12.98 and RM23.10, Dutch Lady 42 sen to RM26.40, HLFG 38 sen to RM11.70, Carlsberg 31 sen to RM8.46, Orient 29 sen to RM5.30, JT International 24 sen to RM6.92, F&N 22 sen to RM18.22 and Petronas Dagangan 20 sen to RM17.38.



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KLCI pares down losses at mid-day

KUALA LUMPUR (Dec 13): The FBM KLCI pared down some of its losses at the mid-day break on Tuesday on some mild bargain hunting, in line with most of the key regional markets that also somewhat steadied.

At 12.30pm, the FBM KLCI was down 0.26% or 3.86 points to 1,463.24, weighed by losses at banks and select blue chips. The index had earlier fallen to its intra-morning low of 1,457.31. Losers led gainers by 354 to 249, while 290 counters traded unchanged. Volume was 952.5 million shares valued at RM596.38 million.

The ringgit weakened 0.66% to 3.1797 versus the US dollar; crude palm oil futures for the third month delivery rose RM19 per tonne to RM3,018, crude oil added 13 cents per barrel to US$97.60 while gold fell US$10.88 an ounce to US$1,655.70.

At the regional markets, Japan’s Nikkei fell 1.02% to 8,565,45, Hong Kong’s Hang Seng Index lost 0.87% to 18,413.52, the Shanghai Composite Index was down 1.33% to 2,261.15, South Korea’s Kospi lost 1.34% to 1,874.36, Taiwan’s Taiex fell 0.73% to 6,898.36 and Singapore’s Straits Times Index shed 0.49% to 2,688.60.

On Bursa Malaysia, Tahps was the top loser this morning and fell 38 sen to RM4.10; JobStreet lost 28 sen to RM2.50, PPB down 24 sen to RM16.36, Genting 20 sen to RM10.62, Apollo, Sungei Bagan and Genting PLANTATION []s fell 13 sen each to RM2.86, RM2.82 and RM8.15 respectively, while MISC and Aeon Credit fell 12 sen each to RM5.48 and RM6.26.

Among the banking stocks, CIMB lost 10 sen to RM6.85, Public Bank, RHB Capital and Hong Leong Bank fell two sen each to RM12.66, RM6.88 and RM10.54 respectively, while AMMB shed one sen to RM5.85.

GAB was the top gainer and added 70 sen to RM12.98; Dutch Lady was up 68 sen to RM26.66, Nestle and KLK up 38 sen each to RM52.28 and RM22.78, Carlsberg 34 sen to RM8.49, JT International 26 sen to RM6.94, Tradewinds 23 sen to RM10.16, HLFG 22 sen to RM11.54, Proton 21 sen to RM4.44 and F&N was up 18 sen to RM18.18.

Meanwhile, the actives included Proton and DRB-Hicom warrants, MAS warrants, Sanichi and BIMB warrants.



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KLCI closes lower, Asian markets slip in weak turnover

KUALA LUMPUR (Dec 8): The FBM KLCI closed lower on Thursday, while key Asian markets slipped in weak turnover ahead of the European leaders’ summit on Friday and release of economic data from China over the next two days.

The FBM KLCI fell 0.68% or 10.07 points to close at 1,472.92.

Losers beat gainers by 447 to 300, while 287 counters traded unchanged. Volume was 1.62 billion shares valued at RM1.18 billion.

At the regional markets, Hong Kong’s Hang Seng Index lost 0.69% to 19,107.81, Japan’s Nikkei 225 fell 0.66% to 8,664.58, Taiwan’s Taiex was down 0.71% to 6,982.90, South Korea’s Kospi lost 0.37% to 1,912.39, the Shanghai Composite Index shed 0.12% to 2,329.82 and Singapore’s Straits Times Index down 1.95% to 2,728.31.

The top loser on Bursa Malaysia was BAT that fell 60 sen to RM47.40; F&N lost 30 sen to RM17.80, JT International down 27 sen to RM6.53, Allianz 22 sen to RM4.66, Riverview, CIMB and RHB Capital down 21 sen each to RM2.91, RM6.99 and RM6.92 respectively, while Hong Leong Bank, IJM Corp and Axiata lost 20 sen each to RM10.54, RM5.50 and RM4.89 respectively.

SAAG was the most actively traded counter with 71.7 million shares done. The stock was unchanged at 6.5 sen.

Other actives included Versatil, DVM, Sycal, Compugates while Proton and DRB-Hicom warrants were also actively traded.

Gainers included KLK, Nestle, Batu Kawan, Sarawak Oil Palm, BLD PLANTATION []s, Boxpak, BHIC, Lafarge Malayan Cement, Genting and Nilai.



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KLCI stays in the red at mid-day as investors remain jittery

KUALA LUMPUR (Dec 8): The FBM KLCI stayed in negative territory at the mid-day break on Thursday, in line with most key regional markets as investors stayed undecided ahead of the European crunch summit over the weekend.

Asian shares fell on Thursday as doubts set in about whether European leaders can agree on a plan to tackle the euro zone's two-year-old debt crisis at a high-stakes summit on Friday, according to Reuters.

The FBM KLCI fell 10.28 points to 1,472.71 at the mid-day break.

Losers led gainers by 216 to 364, while 275 counters traded unchanged. Volume was 895.84 million shares valued at RM498.92 million.

The ringgit weakened 0.19% to 3.1316 versus the US dollar; crude palm oil futures for the third month delivery slipped RM3 per tonne to RM3,112, crude oil gained 13 cents per barrel to US$100.62 while gold shed US$3.57 an ounce to US$1,738.23.

At the regional markets, Japan’s Nikkei 225 was down 0.52% to 8,676.76, Hong Kong’s Hang Seng Index lost 0.67% to 19,111.64, Taiwan’s Taiex fell 1.17% to 6,950.81, Singapore’s Straits Times Index lost 1.59% to 2,738.25 and South Korea’s Kospi shed 0.28% to 1,914.00.

Meanwhile, the Shanghai Composite Index gained 0.42% to 2,342.42.

Among the losers on Bursa Malaysia, BAT fell 34 sen to RM47.66, JT International down 25 sen to RM6.55, KLK 22 sen to RM21.94, Hong Leong Bank and IJM Corp 20 sen each to RM10.54 and RM5.50, Axiata 17 sen to RM4.92, Uzma and CIMB 15 sen each to RM1.60 and RM7.05, while Allianz and KrisAssets lost 13 sen each to RM4.75 and RM5.25.

SAAG was the most actively traded counter with 64.4 million shares done. The stock was up half a sen to 7 sen.

Other actives included DVM, Sycal, iDimension, Timecom, Time and MUI Industries.

Among the gainers this morning were Nestle, BHIC, Boxpak, BLD PLANTATION []s, HLFG, Cycle & Carriage Bintang, Milux, Ajinomoto, PPB and Hwatai.



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KL shares still in the red at midday

Share prices on Bursa Malaysia continued to lose grounds at midday today as the market remained under pressure on external developments.

At 12.30pm, the FBM KLCI was down 10.10 points at 1,472.89, after opening 5.24 points lower at 1,477.75.

Dealers said investors were cautious ahead of a European Union summit this week. Economic data from Japan and Australia that indicated the global economy is slowing also weighed on the local equity market.

The Finance Index dipped 125.78 points to 13,107.37, the Industrial Index slipped 7.39 points to 2,673.03 and the Plantation Index dropped 49.88 points to 7,832.94. The FBM Emas Index lost 59.25 points to 10,085.62, the FBM 70 Index declined 35.03 points to 10,997.26 and the FBM Ace Index was down by 46.98 points to 4,214.26.

Decliners led advancers by 364 to 216 while 275 counters were unchanged, 631 untraded and 25 others suspended. Trading was moderate with a total volume of 895.838 million shares worth RM498.921 million.

Among active stocks, SAAG Consolidated earned 0.5 sen to 7.0 sen, Sycal Ven-WA added 3.5 sen to 13 sen and DVM Technology inched up 1.0 sen to 10 sen.

Sanichi Technology was suspended pending a reply to queries and further clarification on the details of the two announcements made by the company yesterday. British American Tobacco lost 34 sen to RM47.66, JT International eased 25 sen to RM6.55, while Kuala Lumpur Kepong erased 22 sen to RM21.94

Of the heavyweights, Maybank dropped 9.0 sen to RM8.21, Sime darby was flat at RM8.94, CIMB fell 15 sen to RM7.05 while Petronas Chemicals edged up 1.0 sen to RM6.09. -- Bernama



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