Midday Market Tenaga powers KLCI rise, bucks regional fall

Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Wednesday, 04 December 2013 12:42
A + A - Reset
KUALA LUMPUR (Dec 4): The FBM KLCI erased losses to rise 1.42 points or
0.1 %. This came on gains in stocks like top gainer Tenaga Nasional Bhd, and
Malayan Banking Bhd.
At 12.30pm, the KLCI settled at 1,825.71. Analysts' upgrades for the KLCI had
also supported sentiment.
Alliance Research Sdn Bhd research head Bernard Ching said the firm has
raised its target for the KLCI to 1,940 points in end 2014. This compares to
1,840 previously.
In a note, Ching said the upgrade is in anticipation of sufficient liquidity to
support the local market.
"Going into early 2014, we expect investors’ sentiment to be sustained by
improving economic data coming out of advanced economies, particularly US.
Concerns over QE tapering will likely resurface later but we believe investors
should take any volatility triggered by QE tapering as opportunity to accumulate
on weakness.
"We expect liquidity to remain ample in 2014, therefore raise our end-2014
FBMKLCI target from 1,840 to 1,940 based on a market P/E of 15.3x (15x
previously). This implies a 6.3% upside for the benchmark FBM KLCI index,"
Ching said.
Gains in the KLCI so far today follows its all-time intraday high of 1,840.12
points yesterday. The index had subsequently made a record close at 1,824.29.
Today, Bursa Malaysia saw some 581 million shares worth RM552 million
changed hands. There were 259 gainers versus 323 decliners.
Leading decliners included Hong Leong Financial Group Bhd and British American Tobacco (M) Bhd. The most-active stock was Sumatec
Resources Bhd.
This week, Malaysia will announce its October external trade data this Friday (December 6).
Across Asia today, Japan's Nikkei fell 1.7% while Hong Kong's Hang Seng declined 0.38%
Reuters reported that most Asian shares slumped on Wednesday as the prospects of a reduction in the U.S. Federal Reserve's stimulus
early next year prompted investors to cash in gains from their recent rallies.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 percent to its lowest levels in almost two weeks while Japan's Nikkei
share average dropped 2.6 percent from a five-month high hit on Tuesday.
Mainland Chinese shares also bucked the regional weakness, with Shanghai hitting a 12-week high on high hopes for economic reformslaid out by Beijing.