CIMB, Tenaga power KLCI rebound

KUALA LUMPUR: Fund buying of CIMB
and Tenaga helped power the FBM KLCI's rebound on Thursday, with the
index up nearly 1% and snapping three-straight days of losses while AirAsia ended off its day's low.
Sentiment
continued to improve throughout the day, enabling the KLCI to close at
the day's high as funds picked up oversold index linked counters while
the broader market showed strong improvement.
The KLCI closed up
14.62 points or 0.91% to 1,628.40. Turnover was 1.02 billion shares
valued at RM1.62bil. There were 417 gainers, 301 losers and 342 stocks
unchanged.
In a research note early Thursday, CIMB Equities
Research had forecast the recent market weakness was unlikely to drag
on for too long.
It said that in September, the KLCI fell 30
points to 40 points or about 2%, since its peak in mid-August, raising
concerns in investors used to Bursa's stability. However, it said risk
appetite could return several weeks after the Budget is tabled on Sept
28
Key regional markets were mixed ahead as investors hoped the
Federal Reserve would take steps to announce another round of asset
purchases when its meeting ends later Thursday.
Japan's Nikkei
225 rose 0.39% to 8,995.15; Taiwan's Taiex added 0.11% to 7,578.80 and
South Korea's Kospi was a marginal 0.03% higher at 1,950.69 and
Singapore's Straits Times Index inched up 0.02% to 3,030.14.
Bloomberg
reported China's stocks fell the most in two weeks after Xinhua News
Agency said massive stimulus measures would be "detrimental" to
sustainable growth, overshadowing the government's plan to aid
exporters.
Hong Kong's Hang Seng Index fell 0.14% to 20,047.63 and Shanghai's Composite Index fell 0.76% to 2,110.38.
US
light crude oil rose 16 cents to US$97.17 but Brent eased four cents to
US$115.92 and spot gold dipped 30 cents to US$1,730.45.
The ringgit weakened slightly to 3.0816 against the US dollar.
Crude palm oil for third-month futures fell RM22 to RM2,908. However, IOI Corp rose 10 sen to Rm5.10 and KLK eight sen to RM22.10.
At Bursa Malaysia, BAT was the top gainer, adding RM1.50 to RM63.50.
CIMB
rose 18 sen to RM7.58 and pushed the KLCI up 3.12 points while Tenaga's
23 sen gain to RM6.78 added 2.93 points to the index.
HL Bank rose 24 sen to RM13.26, Genting Malaysi 12 sen to RM3.62, Maybank 11 sen to RM9.27 while Petronas Gas added 10 sen to RM18.60 and Petronas Chemical eight sen higher at RM6.50.
Glenealy rose 20 sen to RM7.95. Samling Global Ltd has received nearly all the shareholders' approval to go ahead with the privatisation of Glenealy Plantations (M) Bhd.
At
the court convened meeting on Thursday, minority shareholders owning
about 4.23% of the shares had voted against the proposal. Samling
Global expects to complete the exercise by mid-November.
PPB was the top loser, down 36 sen to RM12.04 while Aeon Credit fell 20 sen to RM10.72 and Tasek 16 sen to RM10.24.
AirAsia ended the day off its low of RM2.82. It closed seven sen lower at RM2.95 with 102 million shares done.