All Asian markets post strong gains

Written by Joseph Chin
Friday, 23 October 2009 13:08

KUALA LUMPUR: All key Asian markets posted strong gains at the midday break on Friday, Oct 23, as sentiment was underpinned by the firmer close on Wall Street after better than expected corporate earnings.

While the surge in oil price, which rose 40 cents to US$81.59 at midday, could attract more interest in O&G stocks and encourage more exploration, the downside is the impact on sectors dependent on oil including aviation, transport and other logistics companies.

The weakening US dollar has caused a spike in commodity prices including oil, would have an adverse impact on the recovering economies also.

At 12.30pm, the FBM KLCI rose 7.33 points or 0.58% to 1,267.35. Turnover was 399.46 million shares valued at RM531.44 million. There were 289 gainers, 280 losers and 253 stocks unchanged.

Japan's Nikkei 225 rose 0.47% to 10,315.26, Hong Kong's Hang Seng Index added 1.47% to 22,537.94, Shanghai's Composite Index added 1.84% to 3,107.56, and Singapore's Straits Times Index 1.26% higher at 2,715.86.

Crude palm oil futures rose RM29 to RM2,239 while US spot gold added US$2.30 or 0.22% to 1,062.4.

At Bursa Malaysia, investors were awaiting news about the Budget 2010 proposals which would be unveiled by Prime Minister Datuk Seri Najib Razak at 4pm.

Economists see the economy has recovered from the worst recession since the Asian financial crisis and expectations are that GDP contracted at a smaller pace of about 3% for 2009 and then turning around to grow about 3% to 4% next year.

The positive economic outlook saw some mild fund buying of GLC stocks and key companies which would benefit from the recovering economy and implementation of infrastructure projects.The government, had via Khazanah Nasional, had been reducing iis stakes in GLCs. Expectations are that there could be more divestments but with Khazanah still holding majority stakes.

CIMB rose 22 sen to RM12.78 while KLK added 20 sen to RM15.10 while its major shareholder Batu Kawan advanced 22 sen also to RM10.80 and Sime Darby 16 sen to RM9.02. IJM added 13 sen to RM4.94, Tanjong 14 sen to RM15.24.

Axiata was the most active counter with 19 million shares done, falling four sen to RM3.01. Green Packet-WA added 3.5 sen to 43.5 sen and the sharaes three sen to 93 sen on news about its venture into Singapore.

Three-A Resources' strong earnings saw the share adding nine sen to RM1.53.

Shell Refinery fell the most, down 28 sen to RM10.42, though it should benefit from the surge in crude oil price because of the positive impact on its stockholdings.

Glove makers gave up some gains, Hartalega fell 10 sen to RM5.49 and Kossan six sen to RM5.24.