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Tuesday, December 10th, 2019

Fund buying of Maxis, GentingM boosts KCLI amid cautious market

by November 28, 2016 General

KUALA LUMPUR: Fund buying of Maxis Bhd, Genting Malaysia and Sime Darby shored up the KLCI slightly but the broader market was cautious due to the weak ringgit.

At 5pm, the KLCI was up 1.4 points or 0.09% to 1,628.66. Turnover was 1.32 billion shares valued at RM1.43bil. The broader market was cautious, with decliners beating advancers 594 to 225 while 318 counters were unchanged.

Latest data from MIDF Equities Research showed that foreign fund flow had turned negative at Nov 28. Net selling by foreigners in November saw the fund flow turn negative to -RM1.37bil year-to-date in contrast with net inflow of RM6.47bil in April.

Key Asian markets were mostly higher, with Chinese stocks in Hong Kong ending at a seven-week high as railroad companies advanced after China approved a US$36bil rail plan for cities around Beijing. 

Oil prices fell on Monday, adding to Friday’s steep losses as doubts re-emerged over the ability of major producers to agree output cuts at a planned meeting on Wednesday aimed at reining in global oversupply, Reuters reported.

Brent crude futures fell 22 cents at US$47.02 while West Texas Intermediate (WTI) crude futures were down 20 cents to US445.86.

The ringgit continued to come under pressure, sliding to 4.4637 against the US dollar from the previous close of 4.4583, it fell against the pound sterling to 5.5775 from 5.5525 and weakened against the Singapore dollar to 3.1329 from 3.1280. It was lower against the Euro to 4.7590 from 4.7340.

The weak ringgit helped boost crude palm oil, where the contract for third-month delivery rising RM36 to RM3,068 per tonne.

Maxis rose 19 sen to RM6 and pushed the KLCI up 1.79 points, Telekom Malaysia added five sen to RM6.27, Digi was flat at RM4.97 while Axiata gave up five sen to RM4.21.

Genting Malaysia added 10 sen to RM4.83 and nudged the KLIC up 1.01 points and Genting Bhd was nine sen higher at RM8.90. 

Sime Darby rose six sen to RM8.16 and pushed the KLCI up 0.67 of a point. PPB Group added 18 sen to RM15.98, IOI Corp was flat at RM4.36, KL Kepong fell 12 sen RM23.98.

FGV fell 12 sen to RM1.44 in active trade. CIMB Equities Research says the plantations giant may face a backlash from the markets in the short-term from the RM300mil write-off stemming from fraud in a joint venture in Turkey.

Banks were under pressure except Public Bank which rose four sen to RM19.54, Hong Leong Bank gained two sen to RM13.26, CIMB and HLFG were flat at RM4.66 and RM14.96 while AmBank shed one sen to RM4.18, RHB Bank and Maybank five sen each to RM4.65 and RM7.75.

Power giant Tenaga lost six sen to RM14.14 and MISC seven sen down at RM7.20.

Among the oil and gas stocks, Petronas Gas rose four sen to RM21.40, Petronas Chemicals were flat at RM6.79 while Petronas Dagangan lost 12 sen to RM23.46. SapuraKencana was flat at RM1.44.

The Store rose 12 sen to RM3.02 ahead of an announcement of a takeover by its major shareholder. 

Kim Hin was the top gainer, up 28 sen to RM1.84 while MKH gained 10 sen to RM2.92 and JHM Consolidated nine sen higher at RM1.65.

Bumi Armada fell four sen to 51 sen after the disappointing results though analysts expect the performance to do improve next year.

Among the key regional markets,

Japan’s Nikkei 225 closed down 0.13% to 18,356.89;

Hong Kong’s Hang Seng Index rose 0.47% to 22,830.57;

CSI 300 added 0.39% to 3,535.08;

Shanghai’s Composite Index gained 0.46% to 3,277

Hang Seng China Enterprise rose 0.87% to 9,875.54;

Taiwan’s Taiex advanced 0.69% to 9,222.24;

South Korea’s Kospi rose 0.19% to 1,978.13;

Singapore’s Straits Times Index rose 0.54% to 2,874.65.

Spot gold rose US$9.01 to US$1,192.57.