Cautious start for markets

Tags: IOI Corp | Kulim | Oilcorp

Written by Joseph Chin
Thursday, 24 September 2009 10:23

KUALA LUMPUR: Most key Asian markets were cautious in early trade on Thursday, Sept 24, with the exception of Japan, while at Bursa Malaysia, the FBM KLCI managed to eke out marginal gains, aided by IOI Corp.

At 10am, the FBM KLCI rose 1.06 points to 1,220.13 after a weak start. Turnover was 160.34 million shares valued at RM163.82 million. There were 138 gainers, 155 losers and 149 stocks unchanged.

Japan's Nikkei 225, which resumed trade, rose 1.74% to 10,550.51 with exporters such as Honda Motor Co rising as investors took comfort from the Federal Reserve's comments about a recovery in the US economy. The positive outlook helped outweigh concerns about the Fed's move to gradually withdraw the stimulus programme.

Hong Kong's Hang Seng Index opened 1% down at 21,368.47, Shanghai's Composite Index lost 0.54% to 2,827.49 and Singapore's Straits Times Index was slightly lower at 2,684.52.

On the local market outlook, Maybank Investment Research was more cautious, saying that the FBM KLCI may hit its saturation zone of 1,237.25 to 1,248.34 very soon.

"As such, potential rewards diminish significantly, whilst risks to the downside increase greatly. Remain in a "selling" mode and stay vigilant. Blue chip stocks that had led the rally would be under heavy liquidation after the DJIA's overnight fall," it said.

IOI Corp rose seven sen to RM5.37 with 811,700 shares done. EPMB and Ingress, which are suppliers of car parts, rose 6.5 sen each to 52 sen and 78.5 sen.
NSTP rose six sen to RM2.04 after Macquarie Research initiated coverage with an Outperform recommendation and a target price of RM2.50.

OilCorp was the most active with 27.83 million shares done, sliding 6.5 sen to 20 sen after it announced that it had failed to meet its interest payment of RM1.64 million due and payable on Sept 17. AirAsia fell four sen to RM1.41.

Kulim was the top loser, down eight sen to RM7.41 with 111,900 shares done. Hap Seng was down five sen to RM2.50, off the early low of RM2.40. Bursa and Tanjong shed four sen each to RM8.13 and RM15.10.