FBM KLCI ends 1.5% higher @1079.63

MALAYSIA'S FTSE Bursa Malaysia KLCI Index rose 15.97, or 1.5 per target="new">cent, to close at 1,079.63, the highest level since June 15. Only one stock fell on the 30-member measure. July index futures added 2.2 per cent to 1,081. IOI Corp, Malaysia’s second-largest palm-oil producer, rose 1.8 per cent to RM4.62, the biggest advance since June 24. Kuala Lumpur Kepong Bhd added 2.6 per cent to RM12, the most since May 20. Kulim Malaysia Bhd jumped 7 per cent to RM6.85, the largest increase since November 3.
FBM KLCI was in positive territory throughout the day on improved trading sentiment as the market took its cue from the rally across regional markets. Gains were broad-based, led by banking stocks such as Commerz, Public Bank and Maybank. On the other hand, fresh buying interest emerged on second and lower liners after relatively lackluster performance in recent days.

Overall, the performance of local market in the next few days would depend on the US market as the second quarter earnings season report from US companies this week will serve as a good indicator of the sustainability of the global economic recovery. The Finance Index jumped 2.11% to 8698.48 points, the Plantation Index added 1.45% to 5317.57 points and the Properties Index rose 2.06% to 701.22 points. The market traded within a range of 19.15 points between an intra-day high of 1082.81 and a low of 1063.66 during the session.

Palm oil futures in Malaysia climbed for the first time in three days, gaining 3.3 per cent, set for the biggest increase since June 25.

KNM Group Bhd, Malaysia’s biggest listed oil and gas services provider, rose 4.9 per cent to 75 sen, the most since June 24. Dialog Group Bhd added 2.9 per cent to RM1.08 and Kencana Petroleum Bhd gained 0.6 per cent to RM1.75. The three companies may benefit from a planned US$10 billion refinery in Malaysia, HwangDBS Vickers Research said in a report today. The companies might take part in the development, “considering their track record” on similar industry contracts, HwangDBS said.

Bumiputra-Commerce Holdings Bhd, Malaysia’s second-biggest bank, rose 3.3 per cent to RM9.50, the largest gain since July 2.

The stock was the second-best performer on the benchmark stock index. Kenanga Investment Bank Bhd. raised its 2009 earnings per share estimates on the banking group by 13 percent to account for “strong” non-interest income. Kenanga boosted the target price on Bumiputra-Commerce to RM11.60 from RM10.30, Kenanga said in a report today. Comintel Corp, a Malaysian contract manufacturer of electronics components and provider of communications systems, advanced 8.3 percent to 32.5 sen, the biggest gain since June 29.

The company said it won a 15.6 million ringgit contract to upgrade the information and technology infrastructure of Technology Park Malaysia Corp.JAKS Resources Bhd, a Malaysian pipe maker, rose 6.5 per cent to 82 sen, the most since June 25. OSK Research has a “trading” target price of RM1.23 on the stock, saying the company is bidding for pipe-related projects valued at RM4.3 billion.

Malaysia Pacific Corp advanced 7.9 per cent to 54.5 sen, the highest close since June 17. The property developer is in talks with a fund to jointly develop a 50-story office tower in Kuala Lumpur. The fund comprises local and Middle Eastern parties, the company said in a statement. Malaysia Pacific said it is not in talks with Qatar Investment Authority as reported in the Business Times newspaper on July 10. Vastalux Energy Bhd, an oil and gas services provider, climbed 3 per cent to 52 sen, rebounding from yesterday’s 1.9 per cent slide, after it denied “speculation” that state oil company Petroliam Nasional Bhd may blacklist it and revoke some contracts offered to the company. Vastalux also said it’s not been in talks to sell the company to any party, denying a Business Times newspaper report that said a group of unidentified oil and gas companies is considering a bid to buy Vastalux.