CIMB, Tenaga underpin FBM KLCI

KUALA LUMPUR: CIMB Group and Tenaga's share prices helped underpin the FBM KLCI in early trade on Wednesday, Feb 24 despite the more cautious market sentiment following the overnight fall on Wall Street.

At 9.15am, the FBM KLCI was up 3.19 points to 1,269.62. Turnover was 39.7 million shares done valued at RM60 million. The broader market was weaker, with 118 losers to 65 gainers.

CIMB rose 30 sen to RM!2.96 after posting its excellent set of earnings while Tenaga added seven sen ahead of the Cabinet's decision on tariff hike.

KKB was the top gainer, 38 sen higher to RM4.03 while AHealth gained 18 sen to RM2.16 and Eng 16 sen higher to RM1.92.

Transmile was the top loser after the sharp losses, down 30 sen to 61 sen wile MISC shed 13 sen to RM8.12.

Some glove makers saw profit taking, with Top Glove down six sen to RM11.18 while Adventa and Supermax shed five sen to RM3.53 and RM5.86 while Hartalega eased four sen to RM7.35.

HwangDBS Vickers Research said broadly speaking, stocks on Bursa Malaysia should drop today in anticipation of a regional fall following the overnight slump on Wall Street.

Key U.S. equity bellwethers slipped between 1.0% and 1.3% hit by a weaker consumer confidence indicator.

"Still, we may see selected counters bucking the downtrend ahead. Among the flurry of corporate earnings announcements that came in last evening, CIMB and MRCB stood out as they beat expectations.

"Of greater interest is that big cap Tenaga could benefit from a potential electricity tariff hike pending a Cabinet decision to be made today," it said.

HwangDBS Vickers Research said technically, the benchmark FBM KLCI will probably pull back today, on its way to test the first support line of 1,255.

Meanwhile, on the macro front, two key data will be due this evening: (a) 4Q09 GDP report with consensus projecting a y-o-y increase of 2.7% after recording three consecutive quarters of negative annual growths; and (b) portfolio investment flows of shares and corporate securities following a net deficit sum of RM83.4b chalked up over nine straight quarters since 3Q07.