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Friday, October 29, 2010

FBM KLCI eyes all-time high, MMHE in limelight

Bluechips barometer eases past 1500;
Intraday volume increases 28.6%
Late buying on index-linked stocks on Friday, Oct 29 pushed the FBM KLCI closer the all time high of 1,516 on Jan 11, 2008 as sentiment was underpinned by the listing of Marine and Heavy Engineering Holdings Bhd (MMHE).
The FBM KLCI closed 6.22 points higher at 1,505.66. Market sentiment turned for the better, with advancing counters beating decliners 436 to 380 while 287 stocks were unchanged. Turnover was 1.46 billion shares valued at RM2.34 billion.

MMHE closed at RM4.51, up 71 sen from its institutional offer price of RM3.80. The retail price was RM3.61. There were 142 million shares transacted.
Analysts said the listing of MMHE provided the much needed spark for the market which had seen some consolidation after failing to close above the key 1,500 level in recent days.
Research houses had target prices for MMHE – a leading heavy engineering and marine services provider -- ranging from RM4 to as high as RM4.72, which is a premium of between 10.8% and 30.7%, based on the retail price of RM3.61. The institutional price is RM3.80.

Analysts said the MMHE would be part of fund managers’ portfolio and would definitely attract strong interest. They expected the shares to make a strong debut, which would in turn also generate excitement for the launch of Petronas Chemicals Group Bhd next Tuesday.

Among the index-linked stocks of the FBM KLCI, CIMB rose 10 sen to RM8.29, Axiata Group gained seven sen to RM4.49, pushing the index up by a combined 3.21 points. GENTING BHD added 16 sen to RM10.44 and Genting Malaysia advanced 10 sen to RM3.50, piling a combined 2.37 points to the index. KL Kepong 24 sen to RM19.80, DiGi.com 14 sen to RM25.34 and MISC 11 sen to RM8.78.

Major asian markets closed mixed
In Hong Kong stocks edged lower on Friday, closing out a second week of losses as financials weighed on disappointing results and as investors pumped money into shares of AIA which jumped 17 percent on its debut.
The benchmark Hang Seng index ended down 0.49% at 23,096.32, closing below a previously long-held resistance level at 23,100 and sparking concern that the break above that level would not hold.

AIA Group Ltd climbed to HK$23.05 in its Hong Kong debut on Friday as investors, chasing exposure to Asia's fast-growing life insurance business, piled into the record offering in the world's hottest IPO market.

In Tokyo, Japan's Nikkei average fell 1.8% to a seven-week closing low on Friday as disappointing earnings hit shares of companies such as Sharp, with downward momentum accelerating after the index breached a key technical support level.
Investors were keen to lighten long positions ahead of the weekend and before a blizzard of earnings reports due after the close on Friday and a highly anticipated Federal Reserve policy-setting meeting on Nov. 2-3.

The benchmark Nikkei ended down 163.58 points at 9,202.45, its lowest close since Sept. 9, while the broader Topix slipped 0.4% to 810.91. Traders said foreign brokerages could be actively selling.

So far this year, the Nikkei has lost nearly 13%, while the Dow Jones industrial average has gained 6.6% and Britain's FTSE 100 is up about 5%.


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