KL shares close higher

Published: 2010/01/05

SHARE prices on Bursa Malaysia closed broadly higher today with the market capitalisation of listed companies hitting the RM1 trillion mark.

The all-time high market value of Bursa Malaysia of RM1.1 trillion was recorded during the early part of 2007 before the global financial crisis in the second half of 2007.

Persistent buying by foreign and local funds pushed the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) to touch an intraday high of 1,290.55 before closing 12.49 points or 0.98 per cent higher at 1,288.24, the highest since July last year.

On July 6 last year, the KLCI was renamed FBMKLCI to reflect its global relevance and reach.



It had opened 2.51 points higher at 1,278.26 today.

Malaysian Investors Association president Datuk Dr P.H.S. Lim, said the current rally in the local market came following an increase in financial activities coupled with a favourable global economic situation.

It is normal at the beginning of a new year for fund managers to allocate money to invest in the equity market, thus increasing financial activity in the market, he said.

The boost for the market also came with indications of stabilisation in the Western economies and without any sign of increase in interest rate locally.

Lim said the positive economic fundamentals for the Asian region including China will see the issuing of a lot of initial public offering (IPO) this year.

He disclosed that Hong Kong would be issuing US$42 billion IPOs while Malaysia is expected to issue at least 16 to 17 IPOs including that of government-linked companies and its subsidiaries.

As for the other indices, the Finance Index rose 80.41 points to 11,139.63, the Plantation Index surged 128.22 points to 6,505.08 and the Industrial Index added 16.22 points to 2,681.86.

The FBMEmas Index jumped 96.76 points to 8,658.19, the FBMTop 100 Index increased 89.63 points to 8,435.76, the FBM70 Index surged 121.10 points to 8,498.45 and the FBMACE advanced 117.16 points to 4,474.77.

Advancers led decliners by 658 to 184 while 180 counters were unchanged and 281 others untraded.

In brisk trading, volume increased to 1.864 billion shares worth RM1.984 billion compared with 1.130 billion shares worth RM990.954 million on Monday.

According to Jupiter Securities Sdn Bhd's Head of Research Pong Teng Siew, the higher trading volume today denoted that retail investors were active in the market.

He said investors were focused on plantation, banking and construction counters.

"Lots of foreign funds have been flowing into the Asian region recently. Today, we see foreign funds snapping up big cap stocks in the local market," he said.

Hwang DBS Vickers Research, in its research note, expects the KLCI's uptrend to remain intact supported by a further strengthening of the economic recovery and positive domestic news flow.

"After putting up a surprisingly resilient performance yesterday, there was a good chance the local market will move up today," it added.

Turnover on the Main Market increased to 1.546 billion shares, worth RM1.919 billion, compared with 945.708 million shares, valued at RM951.295 million, recorded yesterday.

The ACE Market volume gained to 206.875 million shares, valued at RM41.879 million, from 74.891 million shares, valued at RM22.518 million, previously.

Warrants rose to 94.720 million shares, valued at RM18.933 million, against 45.599 million units, worth RM7.323 million, on Monday.

Among actives, Compugates Holdings and SAAG Consolidated both added half-a-sen each to 7.5 sen and 18.5 sen respectively and KNM Group added one sen to 81 sen.

Of heavyweights, Sime Darby rose 10 sen to RM9.09, Maybank increased four sen to RM6.90 and CIMB Group gained 12 sen to RM12.98.

Meanwhile, Bursa Malaysia Securities Bhd issued an unusual market activity query to Ho Hup Construction Company Bhd's over the sharp rise in price and volume in shares transacted. It rose 36 sen to RM1.76.Got a great travel photo? Can it win this photo contest?