Blue chips power ahead 22 pts

KUALA LUMPUR: Blue chips, led by Sime, Petronas stocks and Genting powered ahead in the first hour of trade on Monday, Oct 24 as investors were optimistic about the plan to contain the euro zone's sovereign debt crisis.

At 10am, the FBM KLCI was up 22.40 points or 1.56% to 1,461.23. Turnover was 330.95 million shares valued at RM223.96 million. The broader market displayed the positive outlook, with 395 gainers, 68 losers and 158 stocks unchanged.

The ringgit was firmer against the US dollar, up 0.0120 to RM3.1365. US crude oil was up 25 sen to US$87.65.

Key regional markets rallied, with the MSCI Asia Pacific Index up 1.7%. Hong Kong’s Hang Seng Index opened up 3.1% to 18,584.46 and Singapore’s Straits Times Index added 1.59% to 2,755.51 while Shanghai’s Composite Index gained 0.66% to 2,332.51. Japan’s Nikkei 225 rose 1.36% to 8,797.02.

Petronas Gas rose 30 sen to RM13.40 and PetDag 20 sen to RM16.40 while MISC added 20 sen to RM6.40.

BAT was the top gainer, adding 46 sen to RM44.90 while HLFG gained 38 sen to RM11.60 and Sime 29 sen to RM8.4 and DiGi 28 sen to RM31.86. Genting climbed 21 sen to RM9.96 and Genting PLANTATION []s to RM7.48.

CIMB Equities Research, in its technical analysis of the KLCI, said the 30-stock index went into a consolidation phase last week. Index hit a high of 1,465 but succumbed to profit taking by the end of the week.

“This week, we expect the market to remain sideways, possibly between the 1,430-1,465 levels. A break either way will influence its next immediate term trend. If the 50-day SMA (1,437) fails to hold, then the bears would have an upper hand.

“Otherwise, there is still a possibility that the index may charge towards 1,465 again. If this level is taken out, then the 61.8% retracement of the July-September downtrend at 1,487 will be its next target to beat,” it said.

Tanjung Offshore rises on Petronas unit job

Tanjung Offshore Bhd, a Malaysian oil and gas services provider, rose the most in two weeks in Kuala Lumpur trading after winning a RM27 million charter contract from Petronas Carigali Sdn Bhd.

The stock gained 4.2 percent to 87.5 sen at 9:00 a.m. local time, set for the largest gain since Oct. 11. -- Bloomberg

Silk advances on winning contract extension

Silk Holdings, a Malaysian oil and gas services provider, rose to a seven-week high after it won a RM23.5 million contract extension for the supply of an anchor-handling tug to Petronas Carigali Sdn Bhd.

The stock gained 8 percent to 27 sen at 9:03 a.m. local time in Kuala Lumpur trading, set for its highest close since Sept. 2. -- Bloomberg

CIMB Research has technical buy on Tomypak

KUALA LUMPUR: CIMB Equities Research has a technical buy on Tomypak Holdings at 91.5 sen at which it is trading at a FY12 price-to-earnings of 3.7 times and price-to-book value of 0.5 times.

It said on Monday, Oct 24 Tomypak may have bottomed out at the 86 sen level. Recent rebound lifted prices above its downward slopping resistance trend line and this could be seen as a prelude to more upside ahead.

“If prices can continue to hold above its 30-day and 50-day SMAs, there is a good chance that prices may re-rate towards 97 sen to 99.5 sen levels. The 200-day SMA is also a magnet for prices.

CIMB Research said traders may start to nibble now. However, it cautioned that traders should be prepared to cut loss if the 86 sen level is violated. A slight setback is its thin trading volume.

CIMB Research has technical sell on Malton

KUALA LUMPUR: CIMB Equities Research has a technical sell on Malton at 58 sen at which it is trading at a price-to-book value of 0.4 times.

It said on Monday, Oct 24 the rebound from its 39 sen low may have exhausted.

“Prices went close to challenge the 61.8% FR level but the bears were strong here. As a result, the candles have fallen back below its 200-day SMA,” it said.

CIMB Research said if it is right, the stock is consolidating in a bearish flag pattern. This is usually a downtrend continuation pattern. Hence, any rebound towards 60 sen to 62 sen may be a good opportunity to take profit.

“Technical landscape is showing signs of exhaustion. MACD signal line is poised for a negative crossover while RSI has hooked downward. Support is seen at 55 sen and 50.5 sen. Put a buy stop at 62.5 sen,” it said.

CIMB Research has technical buy on Landmarks

KUALA LUMPUR: CIMB Equities Research has a technical buy on Landmarks at RM1.11 at which it is trading at a price-to-book value of 0.3 times.

It said on Monday, Oct 24 the rebound from its September’s low was sharp. Prices pushed above its 30-day SMA to hit a high of RM1.16 before consolidating in a flag pattern.

“Looking at the chart, we think this uptrend is not over yet. Once the 50-day SMA is taken out, buying momentum should pick up again,” it said.

CIMB Research said the indicators are progressing well. MACD signal line has bounced off its lows while RSI is above the 50pts mark.

“Traders with higher risk appetite may start to nibble now. However, always put a stop at below the RM1.05 level. On the upside, once the 50-day SMA is taken out, the following resistance levels are RM1.16 and RM1.25,” it said.

KLCI charges ahead in early trade

KUALA LUMPUR: Stocks on Bursa Malaysia charged ahead in early trade on Monday, Oct 24, with the FBM KLCI up more than 14 points, underpinned by DiGi and banks, as investors’ sentiment was bolstered by the firmer regional markets as Europe’s debt crisis seemed to have make some headway.

At 9.14am, the KLCI rose 14.54 points to 1,453.37. Turnover was 134.70 million shares valued at RM71.25 million. Gainers swarmed losers 293 to 31 while 87 stocks were unchanged.

Reuters reported Asian stocks rose on Monday and the euro gave back some of the gains it made last week after euro zone leaders made some progress towards a strategy to tackle the region's debt crisis. Traders are now waiting for final details expected to be unveiled later this week.

At a summit on Sunday, European Union leaders neared agreement on bank recapitalisation and on how to use the European Financial Stability Facility to stave off bond market contagion.

At Bursa, BAT rose 36 sen to RM44.80, DiGi 22 sen to RM31.80, Genting PLANTATION []s 19 sen to RM7.49 and GENTING BHD [] 15 sen to RM9.90.

Among Petronas-linked stocks PetGas gained 20 sen to RM13.30 and Petronas Chemicals 13 sen to RM6.14. AMMB rose 17 sen to RM6.02 and Hong Leong Bank 12 sen to RM10.70.

CIMB Research maintains Overweight on O&G sector

KUALA LUMPUR: CIMB Equities Research said most local oil and gas players are strong enough to hold their ground should a change in Petroliam Nasional Bhd' licensing system result in more foreign competition.

“But marginal companies could see their piece of the pie getting smaller and the race for contracts get even tougher. Pending further details, the sector remains an Overweight,” it said on Monday, Oct 24.

CIMB Research said also intact are all its stock recommendations, earnings forecasts and target prices.

“Our top picks are Petronas Dagangan for the big caps and Perisai for the small caps,” it said.