Business

Published: Thursday September 10, 2009 MYT 10:57:00 AM
Updated: Thursday September 10, 2009 MYT 2:01:20 PM

FBM KLCI hits a new high for the year


KUALA LUMPUR: The FBM KLCI rose to its highest in 14 months, keeping up with rising stock prices across Asia amid signs of recovering appetite for risk.

At 12.30pm, the local stock benchmark index climbed 12.54 points, or 1% to 1,209 points. Market sentiment was positive with rising stocks leading decliners 360 to 163, while 241 counters were unchanged.

Total volume was 352 million shares worth RM614mil.

The Statistics Department today said Malaysia’s industrial production index fell 8.4% in July from a revised 9.5% contraction in June. The July figure was better than what the economist had expected.

Meanwhile, the Malaysian Palm Oil Board released its latest monthly industry data for August.

Palm oil stockpile in the country rose 6.2% to 1.415 million tonnes in August as exports slumped 9.5% to 1.3 million tonnes, while production stayed flat at 1.49 million tonnes.

Crude palm oil futures on Bursa Derivatives advanced RM44 to RM2,223 per tonne.

In the stock market, shares in Genting Bhd bounced back after a two-day decline after CIMB reiterated its outperform call on the stock despite a “slightly negative” arising from its 54% unit Genting Singapore surprise plan to raise cash by selling rights shares.

Genting Bhd’s commitment amounted to RM2.1bil, which will take away a sizeable chunk of its cash hoard.

“This cash call stirs concerns of a similar fundraising exercise by Genting Bhd. However, we believe this is unlikely given the group’s strategy of M&A being largely undertaken at the subsidiary levels,’’ CIMB said.

Shares in Genting rose 17 sen, or 2.5% to RM7.04 at midday.

Elsewhere, investors snapped up quality names like IJM Corp , PPB Group and Top Glove on improved appetite for risk.

Shares in banking stocks were the biggest driver from the benchmark index today. CIMB advanced 22 sen to RM10.70, Public Bank rose 12 sen to RM10.16 and Maybank added 10 sen to RM6.65.

In overseas markets, Japan’s Nikkei 225 jumped 1.9% to 10,508, while South Korea’s main Kospi Index advanced 2% to 1,640 points and Taiwan’s main stock index gained 1.1% to 7,332 points.

In Hong Kong, the Hang Seng index soared 2% to 21,294 points, but the mood was cautious in mainland China bourses with stocks keepingcloe to the flat lines in Shanghai and Shenzhen.

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