KLCI higher in early trade

KUALA LUMPUR: Blue chips rose in early trade on Tuesday, lifted by gains in Tanjong, KL Kepong and Public Bank while Ekran advanced after it received approval to reduce its share premium account of up to RM1.08bil.

At 10am, the KLCI had risen 4.19 to 1,225.26. Turnover was 91.81 million shares valued at RM140mil. There were 150 gainers, 110 losers while 155 counters were unchanged.

However, Asian markets fell in early trade after the run-up on Monday. Hong Kong’s Hang Seng Index opened lower, down 0.29% or 71.69 points lower at 24,507.07. Japan’s Nikkei 225 fell 0.93% to 13,324.85, while Singapore’s Straits Times Index lost 0.58% to 3,163.48.

On Wall Street, the Dow Jones industrial average was just up 3.01 points, or 0.02% to 12,612.43. Investors were concerned rising oil prices could affect corporate profits, despite optimism the credit crisis was easing after Washington Mutual Inc was close to securing a $5bil (RM15.95bil) investment.

Meanwhile, Reuters reported risk management group SBCC as saying writedowns at banks from the subprime crisis could total US$500bil, double what has already been reported. It said the fallout from the mortgage meltdown may become more clear after September when more subprime mortgages will reset to higher interest rates.

At Bursa, Ekran rose three sen to 30.5 sen with 2.36 million shares done. On Monday, the company received the High Court of Malaya’s nod to reduce its share premium account of up to RM1.08bil.

The RM1.08bil would be used by Ekran to write off the losses in its booksand enable it to start off on a clean slate.

There were some nibbling of blue chips but volume was still thin. Tanjong, KL Kepong, Asiatic and KNM rose 20 sen each to RM16.10; RM15.60, RM7.90 and RM6.10 respectively.

Kwantas rose 12 sen to RM4, while MISC foreign, Anjoo-WB and Public Bank added 10 sen each to RM8.95, RM1.25 and RM10.80 respectively.

BTM was the top loser, down 21.5 sen to 24.5 sen, Texchem lost 14 sen to RM1.16, DiGi and Kossan lost 10 sen each to RM23.30 and RM3.44.