FBM KLCI surges to another new year high

The new week got off to a good start on Monday, on July 20 as trading on Bursa Malaysia and regional bourses stayed buoyant after a good performance last week. Continued buying in bluchips and lower liners pushes Bursa Malaysia to close higher on Monday, tracking the generally steadier Asian performance.

The benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) climbed 18.35 points, or 1.64% to 1,139.25 at 5pm. In the region, Tokyo’s Nikkei 225 rose 0.55% to 9,395.32 and Hong Kong’s Hang Seng Index gained 3.7% to 19,502.37. Shanghai’s A share index surged 2.42% to 3,266.92, Seoul’s Kospi Index advanced 2.67% to 1,478.51 while Singapore’s Straits Times Index was 1.13% higher at 2,458.37.

Regional bourses continued to rally after Wall Street posted its best week since March, and resumed the multi-month long rally that had threatened stalled for much of June and July.

Sentiment was boosted after earnings from major financial firms like Goldman Sachs, Intel and IBM raised hopes that the economy is recovering. More corporate earnings are expected from major US companies this week, including American Express, Boeing, Caterpillar, Apple and Coca Cola, which will form a wider spectrum view of the health of the US economy and the recovery process. With optimism running high, any signs of major earnings disappointment, could however, derail the current rally. Federal Reserve Chairman Ben Bernanke will make his semi-annual report to Congress on Tuesday and Wednesday, and investors will also assess his views on the economy.

At home, gainers outpaced losers by 485 counters to 175, while 213 others were trade unchanged. There were 1.01 billion shares changed hands with a total value of RM1.59 billion.
Following a favourable announcement of second quarter financial results today, Public Bank gained 20 sen to RM10.30 while Bursa was up 5 sen to RM7.30.

Among gainers, PPB Group advanced 30 sen to RM12.60, IJM Corp addded 30 sen to RM6.30, Parkson gained 30 sen to RM 5.35, Genting and Tenaga rose 25 sen each to RM6.00 and RM8.45 respectively.
Plantation stocks, United Plantations climbed 40 sen to RM12.40, United Malacca surged 30 sen to RM7.85, KL Kepong gained 20 sen to RM12.10 and Sime was up 10 sen to RM7.55.
Public Bank added 20 sen to RM10.30, Hong Leong Bank was 5 sen higher at RM5.90 and BCHB gained 15 sen to RM10.10.

Among losers, Nestle dropped 25 sen to RM31.75, Astro shed 20 sen to RM3.42, Hexagon fell 12 sen to RM1.08 and Silk Holdings was down 7.5 sen to 19.5 sen.

MRCB advanced 8 sen to RM1.40, Gamuda gained 14 sen to RM3.20, UEM Land added 6 sen to RM1.65 and MK Land was up 2 sen to RM41.5.
Crude palm oil climbed RM31 to RM2,254 per tonne.
Nymex crude oil added 48 cents to US$64.04 per barrel.
The ringgit was quoted at 3.552 to the US dollar.