KLCI gains in mid-day break backed by heavyweights

KUALA LUMPUR: The FBM KLCI extended its gains on Monday after last week’s mid-week close, pushed up by heavyweights such as Maybank and Tenaga Nasional, and window dressing activities ahead of the new year.

The KLCI was 10.16 points or 0.61% higher at 1,673.67 from last Wednesday’s close. Bursa Malaysia was closed on Thursday and Friday for birth of Prophet Mohammad and Christmas holidays. 

Shares in Maybank were 9 sen higher to RM8.39, pulling the index 1.47 points up, while Tenaga Nasional was up 12 sen to RM13.32 pushing the index up 1.14 points. IHH Healthcare pulled the index up 1.11 points up, gaining 8 sen to RM6.48.

Key regional markets were mixed due to losses in mainland China and Japan.
At Bursa Malaysia, turnover was 1.009 billion shares valued at RM783.5mil. 

The broader market was stronger with advancers outpacing decliners. There were 412 gainers versus 373 losers while 308 stocks remained unchanged.

Both Brent crude and US crude were last trading slightly lower at US$37.76 per barrel and US$37.81 per barrel respectively. 

Wall Street indices closed lower on Thursday with the DJIA and S&P500 lost 0.29% and 0.16% to end at 17,552.17 and 2,060.99 respectively. 

European stocks ended flat in the shortened Christmas Holiday session on Thursday with thin volumes as the oil price remained choppy. 

Among the top gainers at FBM KLCI at 12.30pm were Petronas Dagangan up 60 sen to RM24.60, Shell up 30 sen  to RM5.20, United U-Li Corp up 29 sen to RM5.09. 

Heading losers were P.I.E. Industrials down 36 sen to RM10.44, LayHong down 22 sen to RM6.00 and Warisan TC down 19 sen to RM2.23. 

The ringgit weakened to RM4.3005 compared to RM4.2985 last Friday.

Crude palm oil’s benchmark third-month contract for March delivery fell RM4 to RM2,483 per tonne on Monday from RM2,487 last Wednesday. 

Among the key regional markets:
Japan's Nikkei 225 is up 0.30% to 18,825.77;
Hong Kong's Hang Seng Index is down 0.41% to 22,047.44;
Shanghai Composite Index down 0.20% to 3,620.77;
Taiwan's Taiex gained 0.10% to 8,371.31;
South Korea's Kospi down 0.80% to 1,974.66 and;
Singapore's Straits Times Index is up 0.08% to 2,879.92 points.

Spot gold fell 0.20% to US$1,073.99 per troy ounce. 

Malaysia's sovereign rating remains unchanged: S&P's

KUALA LUMPUR: Malaysia rating outlook remains unchanged at A- and stable despite domestic and global developments says Standard and Poor's. Developments over the past year ranging from the controversy surrounding the state fund 1Malaysia Development Fund (1MDB), China's policy shift and oil prices have not affected Malaysia's economic prospects and fiscal balance sheet said S&P's sovereign & international public finance ratings senior director Kim Eng Tan. "Key risk is political risk and even that has moderated," he told a media webcast on the 2016 Credit Outlook for Asia Pacific. The growth projection remains robust with the sovereign rating agency expecting more than 4 per cent this year and next year. Paul Gruenwald who is chief economist for the region said Asia Pacific will continue to be the fastest growing region in the world led by India. "Growth is however likely to remain weak in the region until confidence in the US recovery gains more traction and confidence in Chinese growth stabilises, including property or financial markets,"he said in a webcast on the regional market outlook. S&P expects China to record a 6 per cent growth in GDP in next few years. Gruenwald was however concerned that the export growth has slipped since the global financial crisis. "The contribution from external demand was one fifth of GDP but it has fallen and it is now contributed by domestic demand for eight years now." Global trade responsiveness to the GDP growth, he said, has shown that the global production is now "on-shoring" on the part of the US and China which traditionally imported capital and goods in the past. On the US Federal Reserve Fund's impending rate hike decision tonight, he said: "This is well telegraphed Fed increase and that it has been priced in at 90 per cent suggest we should not see much market volatility. "A 25 basis points hike today will not knock the wind off anyone's balance sheet."

Bursa Malaysia to see buying interest on Wall Street gains

KUALA LUMPUR: BIMB Securities Research expects the local stock market to gain buying interest today, following a positive lead from Wall Street. 

The research house expects the FBM KLCI to hover at around 1,630 - 1,640.

Overnight at Wall Street, markets closed higher as investors turned positive following the stabilisation in oil prices and high expectations for the Federal Reserve to hike rates.

The DJIA and S&P500 gained 0.90% and 1.06% respectively to end at 17,524.91 and 2,043.41.

Meanwhile in Europe, shares soared yesterday following the recovery in oil prices and positive data from the auto sector. 

On the other hand, key regional markets were mixed ahead of the interest rate hike by the Fed. The FBMKLCI slipped 7.12 points or 0.44% to finish at 1,622.84. 

Bursa’s market breadth was positive with 387 gainers against 386 losers while 389 counters were traded unchanged. TOPGLOV (+86sen), AJI (+62sen) and TAANN (+18sen) led the gainers. While BAT (-100sen), UTDPLT (-48) and GAB (-22sen) led the losers.

Trading participation shows net buying by local institutions and retail while foreign institutions were net sellers. 

SET emerged as the top gainer, 2.60% up to close at 1,300.51 followed by JCI (+0.80%), TWSE (+0.41%), KOSPI (+0.27%), STI (+0.21). While N225 (-1.68%), PSEi (-0.66%), SCHOMP (-0.29%) and HSI (-0.17%) were the losers.