KLCI reaches fresh high on local fund buying

Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Tuesday, 30 April 2013 17:42
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KUALA LUMPUR (April 30): Local funds attempted to create a
“feel-good” sentiment by pushing up the FBM KLCI 9.68 points or
0.57% to a new all-time high of 1,717.65 points.
The gains came ahead of Malaysia's most hotly-contested election this
Sunday (May 5).
The KLCI which had traded flat for most of the day, shot up by about
seven points at 4 pm. It had hit a new intraday high of 1,718.44 points
at 4.24pm.
An analyst told theedgemalaysia.com that certain local funds that helped
the KLCI to reach the previous all-time high of 1,711.29 points on April
26 were back today to boost the benchmark index.
“These traders focused on index-linked stocks because by doing so,
you can easily move the benchmark index higher” the analyst said.
These leading blue-chip stocks included BRITISH AMERICAN
TOBACCO (M) [] Bhd (BAT), KUALA LUMPUR KEPONG BHD [] (KLK)
and UMW HOLDINGS BHD [].
The analyst pointed out that today’s total trade volume of 811.7 million
was not that substantial.
“It doesn’t carry a broad-based participation (across the bourse),” the
analyst said.
These local funds, said the analyst, wanted to make people feel good
ahead of the 13th general election.
“It’s a play to give a hint to other investors that there’s nothing to be
concerned of,” the analyst said.
The analyst sees the FBM KLCI facing a resistance level at 1,720 points, as retail investors will not play aggressively before
the election.
JF Apex Securities senior analyst Lee Cherng Wee, however, said that the local market was influenced by US stock markets
and corporate results.
Across Bursa Malaysia, a total of 811.7 million shares worth RM2.27 billion changed hands. Losers outpaced gainers by 443
to 254 respectively.
Today’s top actives included SapuraKENCANA PETROLEUM BHD [], MALAYAN BANKING BHD [] and TENAGA NASIONAL
BHD [].
Top gainers were BAT, KLK and NESTLE (M) BHD []. Top losers included DUTCH LADY MILK INDUSTRIES BHD [],
MALPAC HOLDINGS BHD [] and GUINNESS ANCHOR BHD [].
Across the region, Reuters reported that Asian shares advanced on Tuesday with investor risk appetite bolstered by
expectations for U.S. Federal Reserve and the European Central Bank to continue with growth-supportive monetary stimulus
measures.
European stock markets were seen extending gains, with financial spreadbetters predicting London's FTSE 100, Paris's
CAC-40 and Frankfurt's DAX would open up as much as 0.6 percent. Benchmark index in Italy was also set to open 0.5
percent higher, as investors welcome signs of political stability.
U.S. stock futures were down 0.1 percent, hinting at a subdued Wall Street open after the Standard & Poor's 500 Index
closed at a record high on Monday.