KUALA LUMPUR (Aug 22): The FBM KLCI climbed further on Wednesday after the extended weekend Hari Raya Aidilfitri holiday, driven by nibbling of selected blue chip stocks in quiet trade.
At noon close, the FBM KLCI was up 2.55 points or 0.15% to 1,652.34 – another new high.
InterPacific Research head Pong Teng Siew told Bernama News Agency the main catalyst that lifted the FBM KLCI to chart fresh record highs against the weak key regional market was the re-rating of Maybank following its strong results.
For the six months ended June 30, 2012, Maybank's net profit rose 21.2% to RM2.78 billion, while revenue improved 24.7% to RM13.5 billion. At noon close, the actively traded Maybank shares rose 14 sen to RM9.19.
“The market today is quiet. There is not much news flows except for corporate results. Retail activities focus on the penny stocks while there is some nibbling of blue chips which have reported good results,” said Goh Kay Chong, remisier at SJ Securities.
Affin Investment bank Bhd vice president and head of retail research Dr Nazri Khan in a note Wednesday said that despite the Hari Raya mood, he expects the FBM KLCI to trend higher on improved global sentiment, rising foreign buying and Budget 2013 rotation play.
The noon market saw advancers leading decliners 314 to 312 while 297 counters were unchanged, 708 untraded and 17 others suspended. A total of 657.847 million shares worth RM714.066 million were transacted.
Regionally, Asian shares slipped on Wednesday as slumping Japanese exports reminded investors of the risks the euro zone debt crisis poses to regional economies, but the euro held steady on expectations the European Central Bank will act to rein in surging borrowing costs, according to Reuters.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7%. Japan's Nikkei stock average slid 0.9% as investors cashed in gains after a sharp run-up on mounting hopes for ECB action.
Among the gainers on Bursa Malaysia were BAT, AEONCR, SAM Engineering, UMW, Petronas Dagangan and Maybank.
And among the heavyweight losers was CIMB, which lost six sen to RM7.80. Other losers include Pharma, IJM Plantations and Bernas.