Market Open KLCI rises 0.22% in early trade

Market Open KLCI rises 0.22% in early trade
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Wednesday, 10 July 2013 09:17

KUALA LUMPUR (July 10): The FBM KLCI rose 0.22% in early trade on Wednesday, in line with the overnight gains at Wall Street and uptrend at most Asian markets.

At 9.10am, the FBM KLCI gained 3.94 points to 1,770.43.

Gainers led losers by 144 to 45, while 144 counters traded unchanged. Volume was 115.18 million shares valued at RM103.23 million.

The top gainers included BAT, Eksons, Aeon, MESB, Carlsberg, GCE, Fima Corp, UMW, Eastland Equity and AirAsia.

Meanwhile, AirAsia X Bhd (AAX) was the most actively traded counter on its debut on the Main Market of Bursa Malaysia Securities on Wednesday.

At 9.10am, the stock added two sen to RM1.27 with 47.67 million shares done.

Hwang DBS Vickers Research in a market preview Wednesday said the Malaysian bourse could grind its way up ahead.

“From a technical perspective, the benchmark FBM KLCI may inch higher towards the first resistance line of 1,785 today.

“Over on Wall Street last night, buying interest picked up on account of rising corporate earnings optimism and improved economic prospects. They lifted the key stock barometers by between 0.5% and 0.7% at the closing bell,” it said.

The research house said the positive external backdrop today may drive up local shares like: (a) SapuraKencana Petroleum, which has been awarded an engineering, procurement, CONSTRUCTION [], installation and commissioning contract by Trans Thai-Malaysia valued at US$181 million; (b) construction heavyweights like WCT, Gamuda, MMC, YTL Corporation, MRCB, as they are seen to be the potential beneficiaries of the news that the feasibility study on the Kuala Lumpur – Singapore high speed rail project would be ready this month-end; and (c) AirAsia X, following the debut listing of its shares this morning.

The euro stabilised on Wednesday after tumbling to a three-month low against the dollar after ratings agency Standard & Poor's cut Italy's debt rating, while Asian shares edged up - helped by Wall Street's gains on optimism for U.S. company earnings, according to Reuters.

The dollar hovered near a three-year high against a basket of major currencies, with more investors betting on further gains as the Federal Reserve prepares to scale back its $85 billion a month stimulus programme, it said.