DiGi, PPB weigh on FBM KLCI

Written by Joseph Chin
Thursday, 05 November 2009 10:34

KUALA LUMPUR: Declines in DiGi and PPB shares weighed on the 30-stock FBM KLCI in early trade on Thursday, Nov 5, mirroring the lacklustre key Asian markets after the uninspiring close on Wall Street despite a positive outlook for Asian economies from World Bank.

At 10am, the FBM KLCI fell 0.55 point to 1,253.29. Turnover was 396.9 million shares valued at RM248.79 million. There were 199 gainers, 143 losers and 158 counters unchanged.

Hong Kong's Hang Seng Index opened 0.7% down at 21,465.88, Japan's Nikkei 225 lost 1.15% to 9,730.68 while Singapore's Straits Times Index fell 0.42% to 2,637.23. Shanghai's Composite Index inched up 0.49% to 3,143.88.

Light crude oil fell 45 cents to US$79.95 while US spot gold lost US$4.04 or 0.37% to US$1,088.15.

HwangDBS Vickers Research said Key barometers on the Wall Street ended relatively unchanged between -0.1% and +0.3% as gains in healthcare and services counters were partly eroded by financial stocks due to a change in credit card regulations. This left little guidance to Asian bourses on trading direction today.

"Back home, the benchmark FBM KLCI may extend its gains and is likely to breach its immediate resistance level of 1,255. Supporting the movement would be the trading premium of 7.16 index points or +1.9% on the spot month FBM KLCI futures which closed at 1,261 yesterday," it said.

The research house said i terms of news flows, there may be trading interest in Sime Darby as speculations arise that Malaysian government may seal a deal of selling 10% stake in Sime Darby to a Chinese group; and Berjaya Land as it received the investment certificate from the licensing authority in Vietnam for the development of a project in Vietnam worth RM21.6 billion.

PPB fell the most, down 38 sen to RM15.42 with 64,200 shares done after the late surge yesterday. DiGi fell 28 sen to RM21.92 despite assurances from DiGi.com major shareholder Telenor ASA that the telco could fend off competition from new 3G and WiMAX licensees.

KLK fell 12 sen to RM14.86 and Genting PLANTATION []s five sen to RM6.15. RHB Cap shed five sen to RM5.36.

Lityan lost nine sen to RM2.92 with 1.74 million shares done on some profit. The shares has risen RM1.92 since last Friday when it resumed trading at a reference price of RM1.

Hartalega rose 13 sen to RM5.38 on an upbeat outlook by a local research house while HL Bank added 10 sen to RM8 and Tanjong eight sen to RM15.46. PLB-WA jumped 19 sen to 29 sen and the shares 6.5 sen to 96 sen in thin trade.

Sime Darby added nine sen to RM9.02. This exuberance spilled over to Ramunia, which is being acquired by Sime. Ramunia-WA added two sen to 39 sen and the shares 0.5 sen to 50.5 sen. Time, which was lifted out of PN17, rose 3.5 sen to 55 sen with 63 million shares done.