KUALA LUMPUR (June 11): The FBM KLCI rose at mid-morning on Monday, in line with its key regional peers after euro zone finance ministers agreed to lend Spain up to $125 billion to shore up its struggling banks.
The relief may be short lived though as investors look forward to Greek national elections on June 17 that could lay the path for Athens to leave the bloc and precipitate a deeper crisis over the future of the euro, according to Reuters.
At 10.02am, the FBM KLCI rose 7.76 points to 1,578.38.
Gainers led losers by 226 to 109, while 171 counters traded unchanged. Volume was 160.05 million share valued at RM238.36 million.
At the regional markets, Japan’s Nikkei 225 jumped 2.18% to 8,643.39, Hong Kong’s Hang Seng Index rose 2% to 18,871.90, the Shanghai Composite Index edged up 0.26% to 2,287.35, Taiwan’s Taiex gained 1.35% to 7,093.90, South Korea’s Kospi added 1.67% to 1,866.31 and Singapore’s Straits Times Index was up 1.5% to 2,779.05.
BIMB Securities Research in a note Monday said sentiments will be buoyed by positive signals that there will be a concerted effort to spur economic growth from the US, Europe and China.
Though these have solved nothing as yet, we see these as positive developments to drag prevailing fragile confidence out of its doldrums, it said.
As such, the Dow Jones Industrial Average gained 93 points to close above the 12,500 mark at 12,554.
“European and Asian markets meanwhile missed the news and slumped further on Bernanke’s absence of QE hints on Thursday’s testimony.
“Locally, the FBM KLCI lost 4.7 points to stay just above the immediate support of 1,570. We reckon the local bourse to trend higher today and should be positive to Gas Malaysia which is to be listed today. Our analyst had placed a fair value of RM2.47 on the company,” it said.
Among the gainers at mid-morning, Nestle rose 40 sen to RM54.80, Petronas Dagangan 22 sen to RM20.96, Gas Malaysia 21 sen to RM2.41, Petronas Gas 18 sen to RM17.98, Nakamishci 15 sen to 59.5 sen, HLFG and Genting 12 sen each to RM11.90 and RM9.68, Takaful 11 sen to RM4.99, MBM Resources 10 sen to RM3.18 and Mintye nine sen to RM1.50.
Gas Malaysia was the most actively traded counter with 554.77 million shares done. Other actives included TMS, Trinity, Octago, CBSA, Asia Media and Affin.
Decliners included BAT, BDB, BJ Toto, PPB, Hwatai, Berjaya Asset, Suria and GCE.