KLCI remains in the red at mid-day as Asian markets slide

KUALA LUMPUR (May 9): The FBM KLCI remained in the red at the mid-day break on Wednesday in line with the slump at key regional markets, following the overnight fall at Wall Street.

At 12.30pm, the FBM KLCI was down 3.04 points to 1,587.56, weighed by select blue chips.

Losers beat gainers by 386 to 207, while 286 counters traded unchanged. Volume was 692.41 million shares valued at RM558.87 million.

The ringgit weakened by 0.34% to 3.0675 versus the greenback, crude palm oil futures fell RM6 per tonne to RM3,334, crude oil fell 35 cents per barrel to US$96.66 while gold lost US$14 an ounce to US$1,591.48.

Shares, gold and oil fell and the euro remained pressured on Wednesday as Greece struggled to form a government two days after an election, heightening the risk that a hard-won bailout deal could be scrapped, according to Reuters.

Radical leftist Alexis Tsipras meets the leaders of Greece's mainstream parties on Wednesday to try to form a coalition government, an effort seen as doomed after he demanded that pledges made in exchange for an European Union/International Monetary Fund rescue package be torn up, it said.

Officials estimate Greece could run out of money as soon as next month if it does not stick to the aid package terms, which kept the country solvent and in the single currency bloc, said Reuters.

At the regional markets, Japan’s Nikkei 225 lost 1.62% to 9,032.78, Hong Kong’s Hang Seng Index fell 0.94% to 20,292.00, the Shanghai Composite Index fell 1.33% to 2,416.28, Taiwan’s Taiex shed 0.86% to 7,480.85, South Korea’s Kospi fell 1.10% to 1,945.31 and Singapore’s Straits Times Index shd 0.65% to 2,912.84.

On Bursa Malaysia, BAT fell 48 sen to RM55.20, F&N down 16 sen to RM18.88, Petronas Dagangan 14 sen to RM19.80, Sarawak PLANTATION []s and MSM lost 11 sen each to RM2.92 and RM5.20, Sarawak Oil Palms and Iretex down 10 sen each to RM6.56 and RM1.20, while BLD Plantations and IJM Corp fell nine sen each to RM8.81 and RM5.45.

Harvest Court was the most actively traded counter with 48.1 million shares done. The stock fell half a sen to 70.5 sen.

Other actives included Permaju, Metronic, Ingenuity Solutions, Naim Indah Corp, Ariantec, Focus, CBSA and Perisai.

Gainers in the morning session on Wednesday included GAB, KGB, Cybertowers, MTD ACPI, Rubberex, United Plantations, Sunway, Ajinomoto, Mercury and Kawan Food.



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KLCI gains on Spanish bond sale, US corporate earnings

KUALA LUMPUR (April 18) : Malaysian stocks rose on Wednesday morning in tandem with Asian markets on strong demand for Spain government bonds and better US corporate earnings.

Analysts expect the FBM KLCI to register gains on Wednesday following a stronger overnight close across US markets.

“While increased speculation on ACE market and penny stocks lifted trading activity above the two billion shares mark yesterday, the lower traded value implies that the broader market and blue chips are likely to remain in consolidation mode on cautious trade,” TA Securities Holdings Bhd wrote in a note.

At 10.01am, the FBM KLCI added 5.25 points to 1,601.44. Across the exchange, some 519 million shares worth RM227 million were traded, leading to 265 gainers versus 136 decliners.

Top gainers Sam Engineering & Equipment (M) Bhd rose 29 sen to RM3.88 while SUBUR TIASA HOLDINGS BHD [] was up 20 sen to RM3.02.

Decliners SARAWAK OIL PALMS BHD [] fell 11 sen to RM6.77 while PETRONAS DAGANGAN BHD [] was down 10 sen to RM18.68.

Most active was Ariantec Global Bhd which rose two sen to 22 sen with some 157 million shares done.

Among Asian bourses, Japan’s Nikkei 225 climbed 1.64% to 9,619.46 points while Australia’s S&P/ ASX 200 rose 1.38% to 4,347.8. South Korea’s Kospi was up 1.01% to 2,005.43.



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KLCI struggles to breach 1,600-mark

KUALA LUMPUR (APRIL 17): The FBM KLCI stayed in positive territory in the morning session on Tuesday, but struggled to breach the 1,600-point mark as regional markets mostly retreated on mounting concerns over the euro zone sovereign debt crisis.

Asian shares were capped while the euro fell on Tuesday, as soaring Spanish borrowing costs underscored the fading impact of the European Central Bank's bond purchases and stoked investor nervousness over euro zone debt woes, according to Reuters.

The FBM KLCI was up 0.69 of a point to 1,598.20 at the mid-day break.

Gainers trailed losers by 283 to 278, while 322 counters traded unchanged. Volume was 1.2 billion shares valued at RM669.23 million.

The ringgit strengthened 0.03% to 3.0665 versus the greenback, crude palm oil futures for the third month delivery fell RM2 per tonne to RM3,485, crude oil was unchanged at US$102.93 per barrel while gold fell US$2.63 an ounce to US$1,649.25.

At the regional markets, Japan’s Nikkei 225 edged up 0.11% top 9,480.84 while Taiwan’s Taiex fell 1.61% to 7,605.13, Hong Kong’s hang Seng Index lost 0.58% to 20,490.90, Singapore’s Straits Times Index was down 0.39% to 2,980.57, South Korea’s Kospi shed 0.30% to 1,986.75 and the Shanghai Composite Index inched down 0.18% to 2,352.72.

Mybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Tuesday said the FBM KLCI dropped 5.61 points to close at 1,597.51 on Monday.

“Its resistance areas of 1,597 and 1,609 may cap market gains, whilst the obvious support areas are located at 1,580 and 1,594,’ he said.

He said despite the US markets’ mixed tone last night, Bursa Malaysia could be in for a low-volume trading day.

“From the 1,310.53 low (Sept 2011), the market has surged past its previous resistance of 1,597.08 to stall at 1,600.33 (On April 3).

“Bearish divergence is ample and investors may liquidate on rallies,” he said.

SAM Engineering was the top gainer in the morning session and rose 41 sen to RM3.60, Hartalega added 16 sen to RM8.12, CSL 14 sen to RM1.62, Far East and Subur Tiasa gained 10 sen each to RM7.60 and RM2.73, Rapid nine sen to RM2.54, Carlsberg eight sen to RM10.90, MBSB and Lafarge Malayan Cement gained seven sen each to RM2.23 and RM7.29, while Golsta was up 6.5 sen to 59.5 sen.

Among the decliners, Dutch Lady fell 46 sen to RM23.70, SMPC fell 25 sen to RM1.08, Nestle down 16 sen to RM55.84, Sarawak Oil Palms lost 13 sen to RM6.81, Iretex 12 sen to RM1, Knusford and Bintulu Port fell 10 sen each to RM1.80 and RM6.90, while MalPac and Ta Ann lost nine sen each to RM1.49 and RM6.60.

Ariantec was the most actively traded counter with 315.47 million shares done. The stock rose 5.5 sen to 17 sen.

Other actives included Metronic, Focus, Ingenuity Solutions, SuperComNet, Naim Indah Corp and JCY.



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World economic concerns weigh on KLCI

KUALA LUMPUR (April 17) : The Malaysian equities barometer rose on Tuesday morning against a backdrop of mixed global economic updates. These include news on European sovereign debt woes which offset the effects of improved retail sales in the US.

Analysts said the FBM KLCI could take the cue from the mixed overnight performance of US equity benchmarks against concerns on the impact of Europe’s debt crisis on world financial markets.

“In the absence of fresh market leads, our Malaysian bourse will probably continue to be range-bound for the time being,” HwangDBS Vickers Research Sdn Bhd wrote in a note.

At 10am, the FBM KLCI added 2.19 points to 1,599.7. Across the exchange, some 476 million shares worth RM183 million were traded, leading to 93 gainers versus 139 decliners.

Among top gainers, PETRONAS GAS BHD [] added 10 sen to RM16.88 while GUAN CHONG BHD [] was up eight sen to RM2.95.

Decliners include NESTLE (M) BHD [] which fell 18 sen to RM55.82 while SARAWAK OIL PALMS BHD [] was down 14 sen to RM6.80.

Among Asian bourses, Japan’s Nikkei 225 climbed 0.38% to 9,506.47 points while Australia’s S&P/ ASX 200 rose 0.32% to 4,315.9. South Korea’s Kospi was up 0.2% to 1,996.6.



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KLCI gains on European debt sale and China outlook

KUALA LUMPUR (April 13) : Malaysian shares gained on Friday morning in tandem with Asian markets following overnight gains across US equity markets.

Global markets had found support from updates that Italian government bonds had seen better than expected demand, apart from the anticipation of China’s first quarter gross domestic product numbers on Friday. Analysts said overnight gains across US stock markets is expected lend to support to Asian equities.

“Back home, the benchmark FBM KLCI will probably show an extended upward bias following a cumulative two-day gain of 10 points. The immediate resistance barrier for the bellwether is currently seen at 1,610,” HwangDBS Vickers Research Sdn Bhd wrote in a note.

At 10am, the FBM KLCI added 2.12 points to 1,603.39. Across the exchange, some 300 million shares worth RM145 million were traded, leading to 262 gainers versus 122 decliners.

Top gainers JAYA TIASA HOLDINGS BHD [] added three sen to RM9.29 while AMWAY (M) HOLDINGS BHD [] was up 24 sen to RM10.

Decliners SARAWAK OIL PALMS BHD [] fell 27 sen to RM6.61 while TRADEWINDS (M) BHD [] was down 10 sen to RM10.10

Most active was INGENUITY SOLUTIONS BHD [] which added one sen to 10 sen with some 73 million shares done.

Among Asian bourses, Japan’s Nikkei 225 rose 1.64% to 9,680.85 points while Australia’s S&P/ ASX 200 added 1.03% to 4,324.6. South Korea’s Kospi was up 1.2% to 2,010.49.



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Tenaga, blue chips lift KLCI

KUALA LUMPUR (April 12): The FBM KLCI closed higher on Thursday, lifted by gains at blue chips including Tenaga, Genting PLANTATION []s and Petronas Dagangan.

The FBM KLCI gained 4.10 points to close at 1,601.27.

Losers edged gainers by 366 to 360, while 321 counters traded unchanged. Volume was 1.11 billion shares valued at RM1.60 billion.

At the regional markets, most of the bourses reversed earlier losses as the Shanghai Composite Index rose more than 1.8%.

Meanwhile, Hong Kong shares rose on Thursday lifted by the rally in mainland markets on the back of reports of proposals to boost economic development in Shenzen as well as optimism of easier monetary policy following GDP data due later in the week, according to Reuters.

The euro neared a one-week high against the dollar and European bond markets steadied on Thursday as investors awaited an Italian debt sale that will show whether concerns over Spain are spreading to other debt-laden euro zone nations, it said.

At the regional markets, the Shanghai Composite Index rose 1.82% to 2,350.86, Hong Kong’s Hang Seng Index added 0.93% to 20,327.32,Japan’s Nikkei 225 gained 0.70% to 9.524.79, Taiwan’s Taiex edged up 0.08% to 7,662.92, whiel South Korea’s Kospi fell 0.39% to 1,986.63.

On Bursa Malaysia, Jaya Tiasa was the top gainer and rose 44 sen to RM8.99, SMPC up 34 sen to RM1.48, Tradewinds Plantations gained 19 sen to RM5.90, Cybertowers and Sarawak Oil Palms up 16 sen each to 75 sen and RM6.88, Genting Plantations and Brahims 15 sen each to RM9.67 and RM1.33, while Tenaga, Bat and United Plantations rose 14 sen each to RM6.51, RM54.84 and RM24.90 respectively.

Among the decliners, Warisan fell 30 sen to RM2.20, GAB down 22 sen to RM12.64, KLK 18 sen to RM24.32, BLD Plantations 16 sen to RM9.23, Panasonic, Manulife, Top Glove and LPI down 12 sen each to RM21.50, RM3.25, RM4.20 and RM13.80 respectively, RHB Capital fell 11 sen to RM7.36 and Shangri-La lost 10 sen to RM2.98.

The actives included JCY, Tiger Synergy, Asia Bio, Metronic, Ariantec and CSL.



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KLCI retreats for second day, but pares down losses to stay above 1,590 at mid-day

KUALA LUMPUR (April 5): The FBM KLCI retreated for a second day on Thursday, in line with the weaker overnight close at most global markets as European debt woes stung risk appetite across the board.

At the mid-day break, the FBM KLCI was down 5.86 points to 1,593.41. The index had earlier slipped to its intra-morning low of 1,591.85.

Losers led gainers by 333 to 170, while 351 counters traded unchanged. Volume was 589.37 million shared valued at RM388.82 million.

The ringgit was flat at 3.0650 versus the US dolar; crude palm oil futures for the third month delivery fell RM6 per tonne to RM3,514, crude oil added 76 US cents per barrel to US102.23 while gold gained US$2.60 an ounce to US$1,623.38.

Asian shares fell on Thursday after a weak Spanish bond sale heightened concerns about funding difficulties for weaker eurozone countries, further undermining sentiment hurt by fading expectations of more stimulus from the US Federal Reserve, according to Reuters.

MSCI's broadest index of Asia Pacific shares outside Japan fell for a second straight session, easing as much as 1.3% to a four-week low, while Japan's Nikkei average fell 0.9%, also to a four-week low, after putting in its worst performance in five months a day earlier, it said.

At the regional markets, Japan’s Nikkei 225 fell 1.04% to 9,718.14, Hong Kong’s Hang Seng Index lost 1.09% to 20,564.30, the Shanghai Composite Index fell 1.37% to 2,293.89, Taiwan’s taiex fell 1.7% to 7,628.59, South Korea’s Kospi shed 0.21% to 2,014.44 and Singapore’s Straits Times Index shed 0.05% to 2,986.40.

On Bursa Malaysia, F&N was the top loser in the morning session and fell 26 sen to RM18.74, Sarawak OIL Palms and Genting fell 12 sen each to RM6.69 and RM12.96, Milux fell 10 sen to RM1.30, SHH, Metrod and Aeon Credit down nine sen each to 23 sen, RM1.91 and RM8.80, while Amway lost eight sen to RM9.82.

Among the gainers, Jaya Tiasa rose 24 sen to RM9, Tradewinds PLANTATION []s added eight sen to RM5.02, APB 7.5 sen to RM1, Ipmuda up seven sen to 77 sen, BHIC and Tecnic added six sen each to RM3.34 and RM3.98, while Tiong Nam Logistics and Takaful rose five sen each to RM1.03 and RM3.27.

Metronic was the most actively traded counter with 82.75 million shares done. The stock gained 1.5 sen to 16.5 sen.

Other actives included Ariantec, Naim Indah Corp, Tiger Synergy, SuperComnet, Ingenuity Solutions Focus, key West and Kurnia Asia.



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KLCI snaps winning streak, drops below 1,600-level

KUALA LUMPUR (April 4): The FBM KLCI snapped its winning streak on Wednesday and fell below the 1,600-point level, in line with the retreat at most global markets after on generally weaker sentiment at key regional markets following the overnight dip at Wall Street.

The FBM KLCI fell 7.36 points to close at 1,599.27, weighed by losses and banking and select blue chips.

"Stocks and the euro fell on Wednesday after the US Federal Reserve dimmed hopes for fresh asset-buying, further underlining its divergence with an embattled Europe that remains in crisis-fighting mode," according to Reuters.

Overnight minutes from the Fed's March meet showed less support for more quantitative easing (QE), or bond-buying, in the face of improved economic data, which buoyed the dollar and hit stocks in both the United States and Asia, it said.

With Europe still battling its debt crisis and struggling with economic growth, the focus later will be on the European Central Bank's latest rate-setting meeting, with rates expected to remain on hold at 1%, said Reuters.

At the regional markets, Japan’s Nikkei 225 fell 2.29% to 9,819.99, South Korea’s Kospi fell 1.60% to 2,018.61, and Taiwan’s Taiex lost 1.3% to 7,760.85, while Singapore’s Straits Times Index

The Hong Kong and Shanghai markets were closed for a public holiday.

On Bursa Malaysia, among the banking stocks, CIMB and RHB Capital lost nine sen each to RM7.72 and RM7.74, Hong Leong Bank and HLFG lost eight sen each to RM12.38 and RM12.48, AMMB down six sen to RM6.32, while Public Bank shed two sen to RM13.78.

Among the other decliners, BAT fell 64 sen to RM55.58, Dutch lady down 44 sen to RM35.50, Carlsberg fell 20 sen to RM10.60, F&N 18 sen to RM19, Sarawak Oil Palms 13 sen to RM6.81, while BLD PLANTATION []s, Cepco, Shell, Tenaga and PPB fell 10 sen each to RM9.15, RM1.55, RM10.18, RM6.47 and RM16.60 respectively.

GAB was the top gainer and rose 16 sen to RM13.20, Milux gained 15 sen to RM1.40, GBH 13 sen to RM1.25, Kamdar 12.5 sen to 49.5 sen, Malpac and JCY 10 sen each to RM1.59 and RM1.29, Tradewinds Plantations nine sen to RM4.94, Kurasia 6.5 sen to 63.5 sen and Tradewinds up six sen to RM9.60.

The actives included Ingenuity Solutions, Metronic, Cerotech, ManagePay, Naim Indah Corp, Ariantec, JCY and SuperComNet.



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KLCI snaps four-day winning streak, dips at mid-day break

KUALA LUMPUR (APRIL 4): The FBM KLCI snapped its four –day winning streak and retreated at the mid-day break on Wednesday, in line with the generally weaker sentiment at key regional markets following the overnight dip at Wall Street.

Asian shares fell on Wednesday after the minutes from the U.S. Federal Reserve's March meeting suggested the bank was less inclined to take further stimulus measures, leaving investors looking for more clues to the global growth outlook, according to Reuters

Fed policymakers remained focused on a still elevated jobless rate while noting signs of slightly stronger growth, but the minutes suggested the appetite for further quantitative easing, so-called QE3 has waned significantly in light of an improving U.S. economy, it said.

At the mid-day break, the FBM KLCI was down 5.78 points to 1,600.85, weighed by losses at select blue chips.

Market breadth turned negative with losers leading gainers by 369 to 199, while 315 counters traded unchanged. Volume was 571.84 million shares valued at RM399.87 million.

The ringgit weakend 0.45% to 3.0613 versus the US dollar; crude palm oil futures for the third month delivery rose RM31 per tonne to RM3,530, crude oil shed 32 cents per barrel to US$103.69 whiel gold fell US$1.82 an ounce to US$1,644.30.

At the regional markets, Japan's Nikkei share average abruptly broke below 10,000 to hit a four-week low on Wednesday, after stop-losses were triggered on index futures, raising concerns that Tokyo's strong equities rally so far this year was coming to a halt.

The Nikkei 225 fell 1.59% to 9,890.65, Hong Kong’s Hang Seng index lost 1.31% to 20,790.90, Taiwan’s Taiex and South Korea’s Kospi fell 1.3% each respectively to 7,760.85 and 2,022.54 respectively, Singapore’s Straits Times Index shed 0.38% to 3,003.16 while the Shangai Composite Index edged up 0.47% to 2,262.79 .

BIMB Securities Research in a note Wednesday said that traders I the US resorted to profit on Tuesday taking amid signs that additional stimulus were diminishing from the Feds latest signal.

As such, the Dow Jones Industrial Average dipped 65 points to just below the 13,200 level.

We find this odd as we interpret this as positive and that the US economy is on auto pilot without the requirement of more financial steroids.

Regionally, Asian markets were slightly higher across the board except for Taiwan being hit hard from rumours that capital gains tax may be imposed on stock trades.

Meanwhile, the FBM KLCI continued with its uptrend with another record high via another 2.9 point gain to close at almost 1,607.

Nonetheless, we noticed that investors are becoming wary of the local bourse’s recent uptrend and believe a correction would emerge anytime soon.

“Foreign funds had again flowed into the market with another net positive of RM203 million yesterday.”

“Despite the foreign buying, we reckon the index may see some retracement today albeit marginally,” it said.

On Bursa Malaysia, Shell was the top loser in the morning session and fell 14 sen to RM10.14, PPB lost 12 sen to RM16.58, Litrak, Carlsberg and AFG fell 10 sen each to RM3.94, RM10.70 and RM3.86 respectively, Sop and Amway lost nine sen each to RM6.85 and RM9.80, Inno down eight sen to RM1.42, while MMHE and RHB Capital fell seven sen each to RM3.39 and RM7.70.

Among the gainers, Milux added 15 sen to RM1.40, Tradewinds and malPac up 10 sen each to RM9.64 and RM1.59, Tradewinds PLANTATION []s seven sen to RN4.92, Ewein and MBM Resources up six sen each to 84 sen and RM4.8, whiel Quality Concrete, Fiamma and NSOP added five sen each to RM1.29, RM1.15 and RM6.15 respectively.



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Maybank IB downgrades Sarawak Oil Palms to Hold

KUALALUMPUR (April 4): Maybank Investment Bank Bhd Research has downgraded Sarawak Oil Palms (SOP) to a Hold from Buy previously with an unchanged target price of RM7.20 and said SOP’s JV to secure two tankers does not come as a surprise as logistical support is increasingly crucial as SOP grows in size and sells its palm oil regionally.

“This small initial capital outlay of RM7.7 million has broader implications for its longer-term plan to be a sizeable, integrated PLANTATION [] player.

“That said, its share price has risen 60% since we initiated coverage on 2 Aug 2011. We downgrade the stock to Hold given a narrowed 4% upside to our RM7.20 TP (on 13x 2013 PER),” the research house said in a note Wednesday.



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Stocks to Watch Petra, MAS, MISC

KUALA LUMPUR (Apr 3): There is still room for the FBM KLCI to trade higher, according to analysts, as technical trading dynamics improve in anticipation of more positive updates by the government ahead of Malaysia’s general election.

Analysts said the 30-stock index has breached the 1,600 point level; hence, the possibility that the FBM KLCI will reach the next hurdle of 1,620 points.

The benchmark added 2.85 points to close at a fresh all-time high of 1,606.63 points on Tuesday.

Stocks to watch on Wednesday include PETRA ENERGY BHD [], Y.S.P.SOUTHEAST ASIA HOLDING [] Bhd, SARAWAK OIL PALMS BHD [] (SOPB), MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and MISC BHD [].

Petra Energy has signed a memorandum of understanding with Baker Hughes (M) Sdn Bhd to undertake oil and gas projects in Malaysia.

Y.S.P. plans to reward shareholders with a single-tier first and final dividend of six sen per ordinary share for financial year ended Dec 31, 2011.

SOPB is diversifying into the shipping business following a joint venture (JV) agreement with Shin Yang Shipping Corp Bhd.

MAS has called off its plans to set up a short-haul regional premium airline, and will instead provide such services via an operating unit under the company.

Malaysian Rating Corp Bhd (MARC) has revised the outlook of MISC’s Islamic bonds to negative from stable. The revision has taken into account the shipping firm’s weaker financials, according to MARC.



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Sarawak Oil Palms diversifies into shipping

KUALA LUMPUR (Apr 3) : SARAWAK OIL PALMS BHD [] (SOPB) is diversifying into the shipping business following a joint venture (JV) agreement with Shin Yang Shipping Corp Bhd.

In a statement to Bursa Malaysia on Tuesday, SOPB said the collaboration will allow the firm to participate in the edible oil shipment business, and at the same time, offer logistics support to the PLANTATION [] entity.

SOPB and Shin Yang have set up a JV firm where both firms will hold 45% and 55% respectively.

Both firms have common shareholders, hence, the collaboration is a related-party transaction.



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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 closes sharply higher as regional markets end mixed

KUALA LUMPUR (March 14): the FBM KLCI rose sharply higher in late trade on Wednesday to stay firmly above the 1,570-point level, lifted by gains at select bue chips including Sime Darby, Axiata, Petronas Gas, PPB and BAT.

The 30-stock index closed 11.69 points higher at 1,575.71.

Meanwhile, Shanghai and Hong Kong shares reversed early gains to snap a four-session winning streak on Wednesday, dragged by China plays after Premier Wen Jiabao doused expectations for easing in the property sector at the close of China's annual parliamentary meeting, according to Reuters.

At the regional markets, the Shanghai Composite Index fell 2.63% to 2,391.23 and Hong kOng’s Hang Seng Index lost 0.15% to 21,307.89.

Meanwhile, Japan’s Nikkei 225 closed 1.53% higher at 10.050.52, South Korea’s Kospi added 0.99% to 2,045.08, and Taiwan’s Taiex gained 1.17% to 8,125.26 and Singapore’s Straits Times Index

CIMB Research in its Alpha Edge report on March 14 covering regional markets said last week’s resurgence of US and regional equity markets indicated that it was still not time for a major correction though markets should be close to one.

“Last night, the VIX (Chicago Board Options Exchange (CBOE) Volatility Index) fell to a four-year low, showing signs of complacency among investors. We remain bearish on prospects for this year,” it said.

The research house said that over the past week, the KLCI had been drifting downwards. It is now holding just above the support trendline at 1,568 points.

“A sharp breakdown of this support would convince us that the uptrend since last November has already ended.

“Until that happens, we cannot discount another short upleg towards the 1,580-1,600 levels,” it said.

On Bursa Malaysia, the top gainer was BAT that rose RM1.18 to RM53.98, Petronas Gas gained 48 sen to RM16.98, Far East up 35 sen to RM7.60, Aeon 29 een to RM9.40, PPB 28 wen to RM16.98, Aeon Credit up 25 sen to RM8.35, GAB 24 sen to RM13.48, Shell 22 sen to RM10.22 while Sarawak Oil Palm added 20 sen to RM6.23, while Axiata added six sen to RM5.12 and Sime Darby gaind two sen to RM9.71.

Naim Indah Corp was the most actively traded counter with 117.8 million shares done. The stock fell 2.5 sen to 66 sen.

Other actives included CSL, YTL, Tiger Synergy, HWGB, Euro Holdings, Axiata, Sime Darby, Astral Supreme and Silber Bird.



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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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CIMB Research maintains technical sell on Sarawak Oil Palms at RM6.17

KUALA LUMPUR (Feb 28): CIMB Equities Research is maintaining its technical sell call on Sarawak Oil Palms at RM6.17 at which it is trading at a price-to-book value of 2.2 times.

It said on Tuesday that Sarawak Oil Palms did indeed form a bearish wedge pattern as suggested earlier on Jan 20 but the wedge pattern extended on the upside and ticked off its buy stop at RM6.16.

“We believe that another selling opportunity is at hand here. The bearish divergence on its MACD and RSI show that buying momentum has waned. RSI has also moved down from its overbought territory.

“A close below the key support at RM6.15 would confirm the reversal and prices could soon fall towards RM5.34-RM5.55 next. Put a buy stop at above RM6.45, just in case,” CIMB Research said.



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Market mixed midday, concerns over high oil price

KUALA LUMPUR (Feb 27): Blue chips were higher at midday on Monday, buoyed by CIMB and Telekom but the broader market was mixed as investors’ sentiment was cautious about the impact of higher oil prices on the global economy.

The FBM KLCI rose 2.66 points to 1,561.43. Turnover was 851.34 million shares valued at RM730.13 million. There were 340 gainers, 330 losers and 310 stocks unchanged.

Brent crude eased slightly but stayed around 10-month highs above US$125 per barrel amid escalating tension over Iran's disputed nuclear programme, according to Reuters. Investors concerns were whether it could break through US$130.

US light crude oil fell 40 cents to US$109.37. Crude palm oil prices for third-month delivery rose RM20 to RM3,296 per tonne. The ringgit weakened against the US dollar to 3.0162.

Key regional markets which fell included Japan’s Nikkei 225, South Korea’s Kospi and Singapore’s Straits Times – three countries which are heavily dependent on imported crude oil.

At Bursa Malaysia, Dutch Lady rose RM1.70 to RM27.50 and Carlsberg 35 sen to RM9.80 while Guinness Anchor added 16 sen to RM9.10. Among PLANTATION []s, Batu Kawan added 24 sen to RM18.80 and Chin Tek 15 sen to RM9.10.

CIMB added eight sen to RM7.14, pushing up the KLCI by 1.41 points, Telekom added seven sen to RM5.15, nudging the KLCI up 0.59 of a point while AMMB’s six sen gain to RM6.09 pushed the index up by 0.42 of a point. RHB Capital rose 22 sen to RM7.88.

Naim Indah Corp was the most active with 99.48 million shares done, It added 3.5 sen to 55 sen. China Stationery rose 10 sen to RM1.20.

MBM Resources was the top loser, down 20 sen to RM4.42 on profit taking and also concerns about earnings per share dilution from its proposed rights issue.

BAT, SOP and MAHB lost 10 sen each to RM52.46, RM6.15 and RM5.70 respectively. Latexx fell 12 sen to RM1.56 and the warrants 10 sen to RM1.18.



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Stocks to watch: TM, Maxis, DRB-Hicom, SOP, MPHB

KUALA LUMPUR (Feb 25): Oil and gas and PLANTATION []s stocks could remain in focus following the high oil prices, providing some support for the local stock market and there could be some dividend-driven investors’ interest in stocks like Telekom Malaysia and Maxis Bhd.

The FBM KLCI, which had trailed its regional peers, saw analysts divided on the outlook for the week ahead.

A senior analyst with a bank-backed research house said the Malaysian stock market was expected to trade sideways with downside bias in the week ahead as the local performance pales in comparison with the regional markets.

He did not see any big surprises in the current October-December quarterly corporate results.

Among the companies to announce their results are PROTON HOLDINGS BHD [], MALAYSIAN AIRLINE SYSTEM BHD [] and SIME DARBY BHD [].

However, the head of retail research at Affin Investment Bank Dr Nazri Khan was a tad more upbeat for the local market.

“Going forward next week, we believe FBMKLCI is likely to have an upside bias on local market relative strength (holding up well despite the volatile February results season),” he said.

He cited external factors such as strong Germany resilience following the painful Greece’s bail-out deal, strong US equities, improved commodities price (crude palm oil, soybean, wheat, corn, gold start to track equities) and rising risk appetite in the global forex market (strong gains in emerging market currency including ringgit).

On Wall Street, the S&P 500 had on Friday closed at the highest level since before the collapse of Lehman Brothers in 2008, continuing a pattern of steady gains on signs of US economic recovery.

However, the continued high oil prices had also cast a pall of gloom over the flagging Euro zone economies with a recession seemed imminent for some weaker economies.

At Bursa Malaysia, Telekom Malaysia and Maxis Bhd would be among the top two stocks to watch on Monday after they announced dividends payouts last Friday while other stocks to watch include DRB-HICOM BHD [], SARAWAK OIL PALMS BHD [] and MULTI-PURPOSE HOLDINGS BHD [] (MPHB).

In a pleasant surprise, TM proposed a capital repayment to its shareholders of about RM1.073 billion or 30 sen per share and a final single tier dividend of 9.8 sen per share.

In terms of earnings, TM’s 49% increase to RM598.30 million in the fourth quarter ended Dec 31, 2011 was largely due to the recognition of deferred tax income on unutilised tax incentives in the current year quarter.

Maxis declared a fourth interim single-tier tax exempt dividend of 8.0 sen per share and also proposed a final single-tier tax exempt dividend of 8.0 sen per share for FY11. Its earnings increased 47.5% to RM900 million in the fourth quarter ended Dec 31, 2011 from RM610 million a year ago.

For FY11, it recorded 10% growth in net profit of RM2.527 billion versus RM2.295 billion in FY10. However, its revenue dipped to RM8.800 billion versus RM8.869 billion in FY10.

DRB-Hicom saw its earnings falling 27.6% for the third quarter ended Dec 31, 2011, to RM79.57 million from RM110.10 million as its automotive division was impacted by the severe floods in Thailand. Its revenue rose 5.6% to RM1.69 billion from RM1.60 billion a year ago.

Sarawak Oil Palms Bhd recorded a 60.35% increase in earnings to RM242.95 million in the financial year ended Dec 31, 2011 from RM151.51 million last year, boosted by higher sales and production of crude palm oil (CPO) and palm kernel. It said FY11 revenue increased by 60.7% to RM1.17 billion from RM728.16 million a year ago.

MPHB’s earnings more than doubled jumped to RM260.14 million in the fourth quarter ended Dec 31, 2011 (4Q2011) from RM85.21 million a year ago, boosted by an exceptional gain derived from the sale of PROPERTIES [] within the group. However, its revenue increased by 2.1% to RM913.91 million from RM894.45 million.



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Sarawak Oil Palms FY11 earnings up 60% to RM242m

KUALA LUMPUR (Feb 24): SARAWAK OIL PALMS BHD [] recorded a 60.35% increase in earnings to RM242.95 million in the financial year ended Dec 31, 2011 from RM151.51 million last year, boosted by higher sales and production of crude palm oil (CPO) and palm kernel.

It said on Friday revenue for FY11 increased by 60.7% to RM1.17 billion from RM728.16 million a year ago. Earnings per share were 9.98 sen compared to 10.43 sen.

Sarawak Oil Palms attributed the increase in both revenue and profit to higher production and sales of CPO and palm kernel as well as from trading activities.

For the fourth quarter ended Dec 31, 2011, net profit 11.1% to RM43.32 million from RM48.74 million, due to lower CPO and palm kernel prices compared to a year ago. This was despite a 47.5% increase in revenue to RM313.57 million from RM212.59 million.



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KL shares lower at mid-morning trade

Share prices on Bursa Malaysia were lower at mid-morning today, weighed down by losses in selective blue-chips like CIMB, Sime Darby, Genting and AirAsia, dealers said.

At 11.05am, the FBM KLCI was 1.29 points lower at 1,555.37, after opening 0.47 point higher at 1,557.13.

CIMB fell three sen to RM9.60, Sime Darby eased six sen to RM7.10, Genting lost two sen to RM10.52 and AirAsia declined one sen to RM3.57.

The Finance Index dropped 12.43 points to 13,855.24 and the Plantation Index fell 15.79 points to 8,588.12.

The Industrial Index, however, rose 0.57 point to 2,866.80.

The FBM Emas Index dropped 4.63 points to 10,774.0 and the FBM ACE Index decreased 2.18 points to 4,674.20.

The FBM Mid 70 Index was up 3.62 points to 12,199.38.

Losers led gainers by 317 to 284 while 280 counters were unchanged. Trading was mild with 495.231 million shares worth RM446.528 million traded.

Among active counters, IFCA MSC and Naim Indah added 1.5 sen each to 13 sen and 43.5 sen, respectively, SAAG Consolidated earned half sen to seven sen and Xidelang was unchanged at 40 sen.

Among heavyweights, Maybank rose two sen to RM8.72, Petronas Chemicals was unchanged at RM6.94 and Maxis was up one sen to RM6.00. -- Bernama



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