KLCI surges 14 pts midday, Sime hits RM10

KUALA LUMPUR: Blue chips ended the morning session on Monday firmer on fund buying of blue chips, with heavyweight Sime Darby hitting a five-week high of RM10 as the KL Composite Index advanced 1.14%.

Asian markets also rallied, notching gains of between 1.75% and 2.49%, as investors’ sentiment was boosted by the strong close on Wall Street last week, ignoring the record high price of US$117 (RM367.61) earlier.

At 12.30pm, the KLCI had risen 14.43 points to 1,2282.08, the FBM Emas added 97.46 points to 8,640.49 and the FBM Second Board rose 24.6 points to 5,855.81.

Turnover was 382.98 million shares valued at RM741.29. There were 410 gainers, 191 losers while 202 counters were unchanged.

Asian markets were traded higher. Hong Kong’s Hang Seng Index rose 2.49% or 603.05 points to 24,800.83, Japan’s Nikkei 225 1.68% higher at 13,702.41 while Singapore’s Straits Times Index gained 1.94% to 3,185.36. The Shanghai A Shares Index jumped 1.75% to 3,304.18.

Light crude oil was trading at US$116.60, off the record high of US$117 while crude palm oil futures fell RM93 to RM3,460 per tonne. Malaysian tin price hit a new high of US$21,560 per tonne due to the record London Metal Exchange prices and firm demand.

The ringgit was quoted at RM3.1420 to the greenback.

At Bursa Malayia, Sime Darby gained 45 sen to RM10, the biggest gains in recent weeks, on fund buying and also boosted by reports Petronas awarded RM2bil contracts to the conglomerate and MISC to build oil platforms.

Nestle was the top gainer, advancing 75 sen to RM30, Tanjong rose 50 sen to RM16.50, BAT 25 sen to RM43.50 while DiGi, IOI Corp and Boustead rose 20 sen each to RM24.90, RM7.70 and RM5.50 respectively.

KLCC Property jumped 21 sen to RM3.10. Last Thursday, Citigroup Global Markets research has set a target price of RM4.72 based on its revised net asset value (RNAV).

The research house said the stock offered investors the best exposure to the prime office and retail and hotel sector in Kuala Lumpur, adding that KLCCP was a core holding. It offered investors a secure, steady earnings stream from its commercial investment property and dividend was sustainable.

MRCB was the most active counter with 18.01 million shares done, adding seven sen to RM1.36.

Bursa rose 10 sen to RM8.95 as the weaker Q1 earnings were within analysts expectations.

CIMB Equities Research said Bursa’s 1QFY08 net profit declined by a hefty 40% year-on-year and 14.9% quarter-on-quarter to RM42.1mil, dragged by subdued trading activities in the equity market.

“Although Q1 net profit only accounted for 20.6% of our full-year forecast and 17.7% of consensus, we regard the results as within expectations as we envisage stronger earnings in the 2H, banking on the potential recovery in the equity market,” it said.

United Plantations fell 30 sen to RM13.70 in thin trade while Petronas Dagangan and Telekom lost 10 sen each to RM8.10 and RM11.

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