KUALA LUMPUR: While key Asian markets were mostly down on the back of renewed geopolitical concerns on Wednesday, the FBM KLCI remained in positive territory following strong gains in both crude oil and the ringgit.
At midday, the KLCI was up 3.47 points or 0.21% to 1,680.5. It had hit a high of 1,684.77 earlier. Turnover was 1.55 billion shares valued at RM1.12 bil. The broader market was weaker as decliners beat advancers more than three to one or 624 losers to 197 gainers and 314 counters were unchanged.
On the other hand, regional markets were mixed over geopolitical concerns over the incident between Russia and Turkey, which could have ramifications over the current military action against the Islamic State in Syria.
The ringgit hit a one-month high of RM4.208 aganst the US dollar early Wednesday, continuing its sharp rally. The currency has appreciated by 4% against the greenback since Nov 18.
On its first day of listing, ACE Market debutant Kim Teck Cheong Consolidated Bhd
saw its shares close at more than double its initial public offering price of 15 sen. The consumer packaged goods distributor was last traded at 32 sen at the midday close.
Oil markets were further roiled as a Russian jet was shot down over Turkish airspace yesterday, raising the possibility of more volatility in the Middle East.
Brent crude was last traded at US$46.24 per barrel, or a 6% week-on-week increase. The gains were also triggered by comments from Saudi Arabian officials over the possibility of OPEC abandoning its market-based pricing strategy as member countries head into its latest meeting next week.
Petronas Chemicals Bhd contributed 1.34 points to the KLCI after gaining 10 sen or 1.48% to RM6.84. Malayan Banking Bhd contributed 0.98 points after gaining 0.72% to RM8.40.
Among the Petronas counters, Petronas Gas Bhd inched up six sen to RM23.10 and Petronas Dagangan Bhd was up 14 sen to RM25.18. SapuraKencana Petroleum Bhd also saw strong gains in line with the crude oil rally. The stock rose 6 sen to RM2.19, or a 2.82% gain.
Among the banks, RHB Capital Bhd led the decliners with a seven sen drop to RM5.55. AMMB Holdings Bhd gained four sen to RM4.60 while Public Bank gained two sen to RM18.26.
As for telcos, DiGi was flat at RM5.11, Maxis gained one sen to RM6.60 and TM fell two sen to RM6.58.
Crude palm oil’s benchmark third-month contract for February delivery fell by RM10 to RM2,265 per tonne.
Among the plantation companies in the KLCI, KL Kepong fell four sen to RM22.76. PPB Group was flat at RM15.60 and Sime Darby Bhd gained six sen to RM8.04. IOI Corp remained flat at RM4.14.
Among the key regional markets:
Japan’s Nikkei 225 is down 0.49% to 19,826.39;
Hong Kong’s Hang Seng Index is down 0.49% to 22,476.36;
Shanghai Composite Index rose 0.16% to 3,621.90;
Taiwan’s Taiex fell 0.33% to 8,372.47;
South Korea’s Kospi fell 0.09% 2,014.48 and;
Singapore’s Straits Times Index fell 0.96% to 2,895.39.
Spot gold gained US$3.49 to US$1,079 per troy ounce but remains near a five-year low due to the recent rout in the prices of commodities and precious metals.
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