Key markets up, KLCI in the red midday 03 June 2009

Most key regional markets were higher at the midday break on June 3, on growing evidence the world economy was coming through the worst of the recession but at Bursa, the key KLCI was in the red, weighed down by DiGi and BAT. At 12.30pm, the KLCI was down 2.76 points to 1,060.86. Turnover was 1.05 billion shares valued at RM604.26 million. Advancers led decliners 315 to 217 while 209 stocks were unchanged.
Light crude oil was one cent lower at US$68.54 while crude palm oil futures fell RM21 to RM2,570.

Hong Kong’s Hang Seng Index rose 2.3% to 18,808.77, Singapore’s Straits Times Index added 1.3% to 2,407.11, the Nikkei 225 gained 0.6% to 9,762.8 and Shanghai Composite Index rose 0.87% to 2,747.96.

News reports said with Australia chalking up 0.4% growth in the first quarter, after a revised contraction of 0.6% in the fourth quarter, a jump in US pending home sales and steadying confidence among global consumers added to evidence the world economy, while not rebounding, has come through the worst of the slump.

DiGi fell the most but in thin trade. It lost 80c to RM21.50 with 272,000 shares done after its dividend of 53 sen went ex on June 3. The stock also cut to hold.
BAT lost 25 sen to RM43.75, Parkson 16 sen to RM4.82, Lafarge 10 sen lower to RM4.98.
Pubic Bank foreign and Bursa fell 10 sen each to RM8.70 and RM7.15. Among plantation companies, KL Kepong fell 10 sen to RM11.80 but United Plantations added 10 sen to RM12.60 and BLD Plantations six sen to RM3.28.
Compugates was the most active with 116 stocks done, easing 0.5 sen to 7.5 sen. L&G lost 4.5 sen to 24.5 sen after announcing plans to reduce the par value of the RM1 shares to 20 sen but this would not involve a one-into-five share capital reduction.
MISC and Tanjong rose 20 sen each to RM8.70 and RM13.60, timber stock Jaya Tiasa added 13 sen to RM2.30 and Lingui 10.5 sen higher to RM1.09.

Pelikan saw 11.4 million shares done, rising 17 sen to RM1.25. On May 25, a local research house downgraded the stock to underperform.
Analysts said it Pelikan was likely to underperform given the potential de-rating catalysts of weaker-than-expected revenue in 2Q09; further economic slowdown in Europe and unattractive dividend yields of around 2.7%-3.0%.

Nymex crude oil was down one cent to US$68.54 per barrel.
Crude palm oil third-month futures lost RM13 to RM2,585 per tonne.
The ringgit was quoted at 3.477 to the US dollar.