Market Close KLCI erases losses, rises 0.4%

by **Cals** Sat 11 May 2013, 01:06

Market Close KLCI erases losses, rises 0.4%
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Friday, 10 May 2013 17:11

KUALA LUMPUR (May 10): The FBM KLCI which opened at its day's low, cut losses to post a 6.31-point or 0.4% gain on foreign institutional buying , fund managers said.

At 5pm, the KLCI settled at 1,772.38 points, helped by gains in stocks like MALAYAN BANKING BHD [] and YTL Corp Bhd.

"It is mostly foreign funds," a fund manager told the theedgemalaysia.com over telephone. The index fell to its intraday low of 1,752.26 at 9am.

The fund manager said the KLCI had underperformed other Asian equity benchmarks in terms of year-to-date performance. As such "there is still room to make money in the local market" as the KLCI catches up with regional indices.

Across Bursa Malaysia, 2.54 billion shares worth RM2.86 billion changed hands. There were 745 gainers versus 174 decliners.

The top gainer was NESTLE (M) BHD [] while DUTCH LADY MILK INDUSTRIES BHD [] led decliners. The most-active entity was MALAYSIAN AIRLINE SYSTEM BHD [] rights shares.

Meanwhile, MIDF Amanah Investment Bank Bhd analyst Syed Muhammed Kifni said the research firm has raised its KLCI target to 1,800 points from 1750.

In a note today, Syed Muhammed Kifni said the revision is warranted post general election. This is in anticipation of less political uncertainties in the country and rising forward-earnings expectations.

"We thereby adjust our FBM KLCI 2013 year-end target to 1,800 points. This reflects a PER 2013 of circa 16.4x, which is 1.0 standard deviation above the six-year average, starting from pre-financial crisis days.

"Earnings growth (adjusted) for 2013 is expected at 3.5%," the analyst said.

Major Asian stock markets gained today. Japan's Nikkei rose 2.93% , Hong Kong's Hang Seng climbed 0.47% while Singapore's Straits Times was up 0.29%.

Reuters reported that Japanese equities soared to 5-1/2-year highs on Friday, with the dollar sailing past the symbolic 100 yen level and beefing up the outlook for corporate Japan, but shares elsewhere in Asian shares retreated as global equities paused overnight from recent rallies.