KLCI up 1.1pc

Published: 2009/05/19

MALAYSIAN shares ended up 1.13 per cent today on buying activity in key heavyweights and second liners, dealers said.Malaysia’s Kuala Lumpur Composite Index advanced 11.48 points, or 1.1 per cent, to close at 1,023.49, its steepest gain since May 6.

“A confluence of positive factors helped drive the market higher,” a dealer said.“The positive spillover effect drove a number of blue chips and finance stocks while plantation and oil and gas stocks rose on the back of higher crude oil prices,” the dealer added.

Sapuracrest Petroleum Bhd, an oil and gas services company, advanced 7.9 per cent to RM1.37.KNM Group Bhd, which also provides oil- related services, jumped 9.5 per cent to 81 sen, the sharpest increase since May 4.Crude oil for June delivery rose 4.8 per cent to US$59.03 a barrel in New York yesterday, the highest settlement since November 11.

The contract was at US$60.08 a barrel in after-hours trading as of 4.03 pm Kuala Lumpur time. A gain in the price of crude improves the demand outlook for oil and gas services.IOI Corp, Malaysia’s second- biggest palm-oil producer, rose 2.8 per cent to RM4.48, the most since May 4.Kuala Lumpur Kepong Bhd, Malaysia’s third-biggest palm-oil producer, gained 1.8 per cent to RM11.30.

Kulim Malaysia Bhd added 2.5 per cent to RM6.05. Palm oil futures in Malaysia rose 3.5 per cent to RM2,659 a metric ton on the Malaysia Derivatives Exchange today.Perwaja Holdings Bhd, the No. 3 steelmaker by market value, rose 9.9 per cent to RM1.22.Kinsteel Bhd, the second-largest, added 6.3 per cent to 85 sen.The shares gain on optimism RM7 billion of projects in the government’s stimulus package will buoy earnings.

“It’s the infrastructure play,” said Lye Thim Loong, who helps manage about US$500 million of assets, including Kinsteel shares, at Avenue Invest Bhd in Kuala Lumpur.“If everything goes as planned, you will see a turnaround next year.”

Ahmad Zaki Resources Bhd, a Malaysian construction company, added 11 per cent to 75 sen, the most since February 23.The company won an 18-month contract valued at 195.4 million riyals (US$52 million) from Saudi Oger Ltd. to provide reinforced concrete for a project in Mecca. - Agencies