Bluechips & Crude Oil lift markets 12.30pm June 01 2009

Signs of recovery after China reported better manufacturing activity and firmer commodities prices pushed Asian markets higher at midday break, with Hong Kong the top gainer among key regional indices.

At Bursa Malaysia, expectations of recovery in the economies saw banks leading the gainers’ list. At 12.30pm, the KL Composite Index rose 15.82 points or 1.52% to 1,059.93. Turnover was 792.13 million units valued at RM764.15 million. There were 368 gainers, 181 losers and 171 stocks unchanged.

Key Asian markets were traded higher at the midday break. Hong Kong’s Hang Seng Index surged 2.77% to 18,673.43; Singapore’s Straits Times Index added 1.9% to 2,373.86 while Japan’s Nikkei 225 rose 1.6% to 9,674.91.

A gauge of China's manufacturing activity offered fresh evidence of a recovery in the world's third-largest economy as new export orders grew for the first time since June 2008. Reuters reported growing optimism that the worst of the global downturn was over offset long-expected news that General Motors Corp will file for bankruptcy later in the day in a government-managed process that will pump another US$30 billion in US taxpayers' money into the ailing automaker.
At Bursa, BAT was the top gainer, up 75 sen to RM43.75, Oriental Holdings gained 54 sen to RM5.40, Ta Ann 24 sen to RM3.84 and DiGi 20 sen to RM23.40. PPB rose 40 sen to RM10.90 and United Plantations 30 sen to RM12.50 while among banks, BCHB rose 30 sen to RM8.85,

KNM rose 6.5 sen to 96 sen while companies with interest in the Iskandar Malaysduia region rose in active trade. Tebrau added 4.5 sen to 81.5 sen, UEM Land seven sen to RM1.72 and Mulpha 1.5 sen to 54 sen. Dutch Lady lost 50 sen to RM10.30. Tenaga lost 25 sen to RM7.90 and Sime Darby 15 sen to RM7.05. Nymex crude oil in electronic trade was 64 cents higher at US$66.95 per barrel. Crude palm oil 3-month futures gained RM57.00 to RM2,617 per tonne.

The ringgit was quoted at 3.487 to the US dollar.