KLCI closes at all time high, plantations in focus

KUALA LUMPUR: The FBM KLCI closed at an all-time high of 1,624.29 on
Tuesday, underpinned by buying in small and larger capitalised
plantation stocks, enabling the market to buck the weaker regional
bourses.
At 5pm, the KLCI was up 3.98 points or 0.25% to 1,624.29. Turnover was 1.13 billion shares valued at RM1.53bil.
Market sentiment was firm with advancing counters beat decliners 436 to 338 while 355 counters were unchanged.
In
Europe, shares rose more than 1% after the region's finance ministers
made limited progress on measures to help embattled Spain, but the euro
and commodities fell as signs of a sharp slowdown in China fuelled
anxiety about the global economy, wire reports said.
However, in Asia, most of the regional markets were in the red.
Japan's
Nikkei 225 fell 0.44% to 8,857.73; Hong Kong's Hang Seng Index shed
0.16% to 19,396.36; Shanghai's Composite Index 0.29% lower at 1,264.44;
Taiwan's Taiex 0.8% to 7,251.35 and South Korea's Kospi 0.36% lower at
1,829.45.
Singapore's Straits Times Index bucked the downward trend, closing 1.21% higher at 2,964.62.
US light crude oil fell 71 cents to US$85.28 and Brent lost US$1.44 to US$98.88. Spot gold was trading at US$1,594.35.
The ringgit was firmer against the US dollar at 3.1800.
UOB
Kay Hian Malaysia Research said it continued to be defensive and
cautious of the global economic slowdown, which would be more evident
in the second half of 2012.
The research house said it maintained its year-end KLCI of 1,560, notwithstanding the potential changes to the index components.
"Positively,
the market's potential downside is much more limited compared to our
year-start assessment, as there is better market confidence for a
market neutral General Election outcome (the earliest poll date appears
to be in September).
"Nevertheless, there are still plenty of
investment themes such as a) yield compression phenomenon which favours
telcos and consumers, b) some ETP (particularly O&G) and M&A plays, and c) low production and rising CPO prices," said the UOB Kay Hian Research report.
Crude palm oil for third-month futures slipped RM9 to RM3,144 but analysts viewed that CPO prices still had more upside.
Small
cap and larger plantation stocks were the top gainers for the day. TSH
jumped 28 sen to RM2.80, Chin Tek 24 sen to RM9.05 while IJM Plantations, KLK, PPB and Tradewinds
Plantations added 22 sen each to RM3.72, RM24.12, RM16 and RM5.25
respectively. However Gentign Plantations fell 20 sen to RM9.80.
Other gainers were bank stocks including CIMB, up seven sen to RM7.81, whie Maybank and Public Bank rose four sen each to RM8.74 and RM14 and AMMB three sen higher at RM6.48.
BAT was the top gainer for the day, up 30 sen to RM57 while MMHE rose 24 sen to RM5.59 and KLCCP 23 sen to RM3.72.
Ariantec Global was the most active with 59.20 million shares done, falling 1.5 sen to eight sen. Metronic Global lost one sen to 7.5 sen with 50 million units transacted.
Corporate player Datuk Raymond Chan Boon Siew sold down his stakes in Ariantec Global Bhd and associate company Metronic Global Bhd.
Profit taking saw UMW giving up 27 sen to RM9.63, Mentiga 25.5 sen to 78.5 sen, while Knusford and Pharmaniaga shed 24 sen each to RM1.56 and RM10.36, while Shangri-La and Cocoland fell eight sen each to RM3.48 and RM2.32.