The benchmark index surged 19.32 points, or 1.76%, to 1,116.55 points at the midday break on continued buying interest in blue chips counters and lower liners.About 1.06 billion shares changed hands, valued at some RM1.2bil. Gainers outpaced losers by 457 to 154 while 209 counters were unchanged.
The rise in the index was led by heavyweights PPB Oil Palms Bhd, Malaysian Pacific Industries Bhd (MPI), Public Bank-Foreign and Axiata Group Bhd.
PPB jumped 50 sen to RM12.50, MPI edged up 35 sen to RM5.50, Public Bank-Foreign gained 25 sen to RM10.20.
Shares of Axiata and AMMB were in focus in the morning session on July 16 after analysts upgraded the stocks while the FBM KLCI extended its winning streak.
Axiata surged 21 sen to RM2.91 with 29.17 million shares done after CIMB Equities Research had an Outperform call on the company. It raised Axiata’s FY09-11 core net profit estimates by 3%-7% and SOP-based target price from RM2.75 to RM3.30.
AMMB jumped 20 sen to RM3.88 with 10.5 million shares done
The market also saw heavy trading interest in lower liners and penny stocks, pushing the total turnover in the morning session to above one billion units. Analysts said the run-up on Dow Jones has also spurred buying interest on other regional markets such as Singapore, Hong Kong and Jakarta.
The Hang Seng Index was up 1.62% at 18,553.57, the Straits Times Index rose 18.03 points to 2,407.45 points, the Nikkei 225 increased 94.45 points to 9,363.70 points and the Jakarta Composite Index advanced 11.89 points to 2,135.17 points.
RHB Research Institute continued to overweight the banks, which tend to lead in an economic recovery.
“We are positive on the plantation, power and oil and gas sectors as fundamental demand begins to recover, although in the near term, commodity prices will likely remain volatile due to excess supple and weak demand issues,” it said in a report.
The Hang Seng Index was up 1.62% at 18,553.57, the Straits Times Index rose 18.03 points to 2,407.45 points, the Nikkei 225 increased 94.45 points to 9,363.70 points and the Jakarta Composite Index advanced 11.89 points to 2,135.17 points.RHB Research Institute continued to overweight the banks, which tend to lead in an economic recovery.
“We are positive on the plantation, power and oil and gas sectors as fundamental demand begins to recover, although in the near term, commodity prices will likely remain volatile due to excess supple and weak demand issues,” it said in a report.
It said the forward valuations for the FBM KLCI was currently around 17 and 16 times for calendar year 2009 and 2010 earnings respectively.
“We believe investors should continue to focus on the fundamentally robust companies, which will be least likely to spring any downside surprises,” RHB said.
“We believe investors should continue to focus on the fundamentally robust companies, which will be least likely to spring any downside surprises,” RHB said.
SJ Securities said the overall technicals have improved and its 2009 target remained at 1,150 points. “Following the sharp uptick, it is heading to 1,110, then 1,120 points while support at the MA of 1,074,” it said.
HwangDBS Vickers Research said as liquidity force makes a comeback sooner the anticipated, the FBM KLCI would probably extend its 3.2% gain made over the last two days by breaking past its immediate resistance line of 1,100 today, possibly heading towards 1,125 next.
HwangDBS Vickers Research said as liquidity force makes a comeback sooner the anticipated, the FBM KLCI would probably extend its 3.2% gain made over the last two days by breaking past its immediate resistance line of 1,100 today, possibly heading towards 1,125 next.
It said investors must be hoping for pleasant surprise to emerge to sustain the buying interest and a possible source would be Public Bank’s announcement of its quarterly results tentatively this evening.
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