KLCI pares gains, but stays above 1,800-level

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KUALA LUMPUR (Jan 23): The FBM KLCI pared some of its gains at the midday break on Friday but stayed above the crucial 1,800-point level.

At 12.30pm, the benchmark index rose 1.02% or 18.43 points to 1,800.18. It had earlier risen to its intra-morning high of 1,809.33.

Gainers led losers by 469 to 333, while 305 counters traded unchanged. Volume was 1.57 billion shares valued at RM1.54 billion.

The top gainers included Petronas Dagangan Bhd, Tenaga Nasional Bhd, Public Bank Bhd, Batu Kawan Bhd, Petronas Gas Bhd, Malaysia Airports Holdings Bhd, Malaysian Pacific Industries Bhd, Hong Leong Financial Group Bhd and Nestle (M) Bhd.

The actively traded stocks included KNM Group Bhd, The Media Shoppe Bhd, Sumatec Resources Bhd, Hubline Bhd, Perisai Petroleum Teknologi Bhd, Daya Materials Bhd and Bumi Armada Bhd.

The decliners included DKSH Bhd, Kuala Lumpur Kepong Bhd, Scanwolf Corporation Bhd, CIMB Group Holdings Bhd, Guocoland Holdings Bhd, Tasek Corporation Bhd and Puncak Niaga Holdings Bhd.

Asian stocks extended a global rally on Friday after the European Central Bank launched a landmark bond-buying stimulus programme that buoyed investors' risk appetite, drove bonds higher and left the euro pinned near 11-year lows, according to Reuters.

Crude oil prices jumped after Saudi Arabia announced that King Abdullah had died and his successor, Salman, moved quickly to name his own heir to rule the world's biggest oil exporter. U.S. crude rose 94 cents to $47.25 a barrel, it said.

Meanwhile, M & A Securities Research said its 1H15 year-end target FBM KLCI was 1,840 based on PER of 16.0x and hence, the FBM KLCI was poised to record a gain of 4.5% against 2014 closing of 1,761.

“We have an Overweight call on auto, construction, rubber gloves and telco respectively.

“We predict Malaysia to grow by 5.0% in 2015 against the projection of 5.9% in 2014,” it said.