Business

Published: Wednesday June 20, 2012 MYT 5:51:00 PM

KLCI just 2 points away from historic close of 1,606

By Joseph Chin


KUALA LUMPUR: The FBM KLCI extended its winning streak for the fourth straight day on Wednesday, underpinned by sustained fund buying of key stocks, sending the FBM KLCI near the all-time historic closing high of 1,606.63 on April 3.

The KLCI rose 9.41 points to 1,604.39. Turnover surged to 1.4 billion shares valued at RM1.763bil. Advancing counters beat decliners three to one, with 621 gainers, 196 losers and 291 stocks unchanged.

Key regional markets and European bourses also traded higher as investors pinned their hoped on the US Federal Reserve announcing further stimulus measures to support the economy later Wednesday.

Reuters reported the Fed concludes a two-day policy meeting later in the day. Some investors expect the central bank will extend its bond-buying programme, dubbed Operation Twist, in which it sells bonds with maturities of three years or less and buys securities with maturities of six years and longer.

The Bank of England is close to launching a new round of monetary stimulus because of the worsening euro zone crisis, according minutes of its last policy meeting, which showed officials split 5-4 on the move, with Governor Mervyn King in favour, said Reuters.

Among the key regional markets, Japan's Nikkei 225 rallied 1.11% to 8,752.32; Hong Kong's Hang Seng Index added 0.53% to 19,518.85; Taiwan's Taiex added 0.85% to 7,334.63; Singapore's Straits Times Index 0.34% to 2,852.14 and South Korea's Kospi 0.65% higher at 1,904.12.

However, Shanghai's Composite Index slipped 0.34% to 2,292.88.

US light crude oil gained 7.0 cents ti US$84.10 but Brent slipped 27 cents to US$95.49. The ringgit was quoted at 3.1595 to the US dollar.

Crude palm oil for third-month delivery rose RM92 to RM3,040.

At Bursa Malaysia, DiGi pushed the KLCI up 2.38 points when it added 13 sen to RM4.23 while YTL's 7.0 sen gains to RM2.12, nudged the index up 1.22 points.

Pharmaniaga rose RM1.01 to RM9.50, Nestle 76 sen to RM57.78, Aeon Credit 70 sen to RM11.92 while Dutch Lady added 34 sen to RM35.80.

Petronas Dagangan added 56 sen to RM21.62 and Petronas Gas 20 sen to RM17.96 while Petronas Chemicals added five sen to RM6.61.

Naim Indah Corp was the most active with 97.28 million shares done, up five sen to 34 sen.

Amid the rally, investors also took profit on recent gainers, with Sarawak Oil palms down 25 sen to RM6.20, Carlsberg 24 sen to RM11.92 and MMHE 10 sen to Rm5.40 while MAHB shed nine sen to RM5.60.

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