KUALA LUMPUR (May 22): The FBM KLCI breached the 1,540-point level at mid-morning on Tuesday, as buying momentum picked up in line with the gains at ket regional markets on improving sentiment.
At 10am, the FBM KLCI added 5.99 points to 1,544.90.
Gainers beat losers by 309 to 80, while 182 counters traded unchanged. However, volume was only 189.33 million shares valued at RM137.43 million.
Markets kept gains on Tuesday after reclaiming some ground to move off lows for the year the day before, as hopes grew that Europe would embark on fresh action to address its debt crisis while promoting growth, according to Reuters.
After a meeting of the G8 leading industrialised nations pledged to promote growth, markets were turning to a European Union summit on Wednesday, intended to focus on specific steps to spur growth and create jobs across the bloc, it said.
At the regional markets, Japan’s Nikkei 225 rose 1.01% to 8,721.36, Hong Kong’s Hang Seng Index gained 0.79% to 19,071.20, the Shanghai Composite Index gained 0.47% to 2,359.24, Taiwan’s Taiex added 0.73% to 7,244.49, South Korea’s Kospi rose 1.07% to 1,818.36 and Singapore’s Straits Times Index was up 1.01% to 2,818.22.
BIMB Securities Research in a note Tuesday said global equities received a reprieve of sorts following comments from the European leaders that they will work to maintain Greece in the Eurozone.
It said that as a result, most global markets rebounded after enduring what had been the worst week so far for 2012.
The Dow Jones Industrial Average was up 135 points to just above the 12,500 level with most European bourses also fared similarly, it said.
However, the research house said that whilst such comments may ease the pain albeit temporary, actions rather than words were more important.
It said in Asia, it was a “green day” on Monday for most in line with the higher opening in Europe plus a technical rebound.
In Malaysia, the FBM KLCI made a late dash to close a tad below the 1,540 mark (+6.45) following some bargain hunting activities, it said.
“We sense investors are now more steadfast unlike in 2011 where most panicked rather easily.
“Then again, just how resolute are these investors are still remain to be seen amid the Eurozone debacle but thus far, no one is unnerved yet. We may see another uptrend today with the 1,540 breached and looking at 1,550 as the next resistance,” it said.
Among the gainers on Bursa Malaysia at mid-morning, Dutch Lady was up 92 sen to RM31.50, Nestle gained 76 sen to RM53, BAT 52 sen to RM51.92, Panasonic 28 sen to RM22.28, F&N 20 sen to RM18, Hartalega and Takaful up 14 sen each to RM7.53 and RM3.90, Bosutead 13 sen to RM5.12, Shell 11 sen to RM9.80 and Jaya Tiasa 10 sen to RM8.35.
SMI was the most actively traded counter with 26.9 million shared done. The stock was unchanged at 26.5 sen.
Other actives included Asia EP, SapuraKencana, Ariantec, AsiaPac, Astral Supreme and Naim Indah Corp.
Decliners at mid-morning included PM Technology, Petronas Dagangan, MSM, AHB, KSM, Telekom and MISC.