Market Close KLCI at intraday high on plantation shares, US markets

by **Cals** Fri 20 Jun 2014, 01:52

Market Close KLCI at intraday high on plantation shares, US markets

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Thursday, 19 June 2014 17:16

KUALA LUMPUR (June 19): The FBM KLCI erased losses for a 4.9 point or 0.3% rise to its intraday high of 1,881.48. The rise came on plantation share gains and as overnight US stock market advance supported Asian equities.

Plantation stocks like IOI Corp Bhd and Felda Global Ventures Holdings Bhd rose as crude palm oil prices advanced amid higher crude oil prices.

Reuters reported that Malaysian palm oil futures hit a three-week high on Thursday as fears of disruptions to Iraq's oil supply channelled fuel demand to the vegetable oil, and as the hot weather pointed to prospects of smaller yields.

The benchmark September contract on the Bursa Malaysia Derivatives Exchange touched RM2,477 a tonne, its highest level since May 29, as crude oil prices surged to a nine-month peak to make palm a cheaper, more attractive feedstock for biodiesel producers.

Fund managers told theedgemalaysia.com over telephone today the KLCI had risen as investors priced in expectations of higher CPO demand to produce biodiesel.

"Investors are running ahead of expectation. The KLCI had seen a technical rebound," TA Investment Management Bhd Chief Investment Officer Choo Swee Kee said.

Bursa Malaysia saw 2.04 billion shares worth RM1.75 billion changed hands. There were 469 gainers versus 366 decliners.

British American Tobacco (M) Bhd led gainers while Cahya Mata Sarawak Bhd was the top decliner. The most-active stock was Malaysian Airline System Bhd.

Across Asia, Japan’s Nikkei rose 1.62% while Hong Kong's Hang Seng erased gains to settle 0.1% lower.

Reuters reported that Asian shares rose on Thursday after the U.S. Federal Reserve gave a positive assessment of the economy and committed to keeping monetary policy accommodative.

In commodities, Brent crude hovered near Wednesday's nine-month closing high of $114.26 a barrel hit on persistent worries over oil exports from war-torn Iraq, where Islamic militants seized much of its northern region as Baghdad's forces crumbled.

Tomorrow, Malaysia's Statistics Department will announce the country's May inflation numbers.