Banking stocks, strong regional sentiment lift FBM KLCI

Written by Surin Murugiah
Wednesday, 23 December 2009 01:17

KUALA LUMPUR: The FBM KLCI staged a mild rebound on Dec 22, lifted by gains in finance stocks and select blue chips, as well as the positive sentiment across regional markets.

The key index rose 0.38% or 4.76 points to 1,260.42 points. Trading volume, however, was low at 446.48 million shares valued at RM689.22 million. Gainers beat losers by 335 to 239, while 243 counters traded unchanged.

Across the region, Japan’s Nikkei 225 rose 1.91% to 10,378.03, Hong Kong’s Hang Seng Index was up 0.69% to 21,092.04, Taiwan’s Taiex Index added 0.88% to 7,856, the South Korean Kospi was 0.69% higher at 1,655.54, and the Singapore Straits Times Index jumped 1.33% to 2,823.82.

The Shanghai Composite Index, however, fell 2.32% to 3,050.52.

Asian markets generally closed higher on Dec 22 following the strong showing on Wall Street overnight, where the Dow Jones rose 85.25 points to 10,414.14, while the Nasdaq Composite Index reached its 15-month high of 2,237.66, up 25.97, as TECHNOLOGY [] stocks rallied.

European stocks, buoyed by the gains at the Asian indices, opened trading in positive territory albeit thin volume ahead of the Christmas holiday this Friday.

On Bursa Malaysia, finance stocks including Hong Leong Financial Group (HLFG), HONG LEONG BANK BHD [], EON CAPITAL BHD [], CIMB Group Bhd, PUBLIC BANK BHD [] and MALAYAN BANKING BHD [] gained, while insurer JERNEH ASIA BHD []’s shares and warrants rose as well.

HL Bank and EONCap rose on expectations of positive corporate developments in the local banking scene on the back of news that their respective major shareholders had received regulatory approval to commence merger talks.

HLFG added 22 sen to RM7.52, EONCap rose 12 sen to RM7, CIMB gained 10 sen to RM12.90, Maybank was up three sen to RM6.75 while Public Bank and HL Bank increased two sen each to RM10.96 and RM7.89, respectively. Meanwhile, Jerneh shares jumped 22 sen to RM2.02 while its warrants added 31 sen to RM1.08.

Other major gainers included NESTLE (M) BHD [] which climbed 40 sen to RM33, BRITISH AMERICAN TOBACCO (M) [] Bhd which gained 22 sen to RM42.22, FRASER & NEAVE HOLDINGS BHD [] 18 sen to RM10.58, PADINI HOLDINGS BHD [] 16 sen to RM3.60 and CENTURY LOGISTICS HOLDINGS BHD [] 15 sen to RM1.90.

Inter-Pacific Research Sdn Bhd head of research Anthony Dass said the slight recovery in the FBM KLCI on Dec 22 was a mild correction from Monday’s fallout.

“There was also the positive news from the possible merger and acquisition involving the Hong Leong banking group and EON Capital, as well as developments at Jerneh with regard to the proposed disposal of its insurance business.

“Local investors also appeared to have taken the cue from the positive trend in the regional markets on the back of the strong closing on Wall Street on Monday. However, given the fairly thin trading volume, we expect the market to be range-bound going into the long weekend,” he said.

The top loser on Dec 22 was DFZ CAPITAL BHD [], which lost 28 sen to RM3.77, followed by PPB GROUP BHD [] which fell 24 sen to RM15.76.

KNUSFORD BHD [] and LPI CAPITAL BHD [] gave up 16 sen each to RM1.60 and RM13.30, respectively; while HAI-O ENTERPRISE BHD [] was down 14 sen to RM7.50, Malaysia Airports Holdings Bhd 11 sen to RM4.02, and PHARMANIAGA BHD [] eight sen to RM4.42.

Xidelang Holdings Ltd was the most actively-traded stock with 25.7 million shares done. The counter closed four sen lower at 50 sen. Other actively-traded stocks included KNM GROUP BHD [], DENKO INDUSTRIAL CORPORATION [] Bhd, LCL CORPORATION BHD [] and Maxis Bhd.