KUALA LUMPUR: Low-cost carrier AirAsia and MyEG Services rose in very active trade early Tuesday, underpinned by the strong earnings and corporate news while the FBM KCI chalked up nearly six points, tracking the firmer Wall Street and key Asian market.
At 9.46am, the KLCI was up 5.48 points or 0.33% to 1,687.08. Turnover was 266.70 million shares valued at RM209.49mil. There were 245 gainers, 206 losers and 238 counters unchanged.
Reuters reported Asian shares bounced on Tuesday as doubts the Federal Reserve really would hike rates as soon as September undermined the dollar, while investors continued to count on more policy stimulus elsewhere in the world.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4%, recouping around half of Monday's loss.
Meanwhile, Brent crude futures were up six cents at US$49.32 a barrel, while US crude added nine cents to US$47.
Hong Leong Investment Bank Research reiterated that the KLCI would remain in a consolidation mode unless it can reclaim above the 1,688 (10-day simple moving average) decisively to resume its rally towards the 1,700 and 1,717 levels.
As for Tuesday, it said the KLCI might inch up in the wake of an overnight rally in the DJIA. However, the “Hari Merdeka” holiday on Wednesday and the concern of higher probability of a second Fed rate hike in September may cap any rebound near the 1,688 level, it said.
MyEG rose 10 sen to RM2.17 and its call warrants MyEG-CX added 1.5 sen to 9.5 sen. It proposed one-for-two bonus issue of up to 1.202 billion shares of 10 sen each. Also its earnings surged to RM142.97mil for FY ended June 30, 2016, from RM68.14mil in FY15.
AirAsia rose nine sen to RM3.08 and its call warrants C36 rose 1.5 sen to 21.5 sen. AAX added one sen to 39 sen.
AirAsia’s net profit for Q2, 2016 rose 40.8% on-year to RM342.12mil, boosted mainly by a 40.2% jump in aircraft operating lease income and a 24% reduction in average fuel price to US$59 (RM236) per barrel from a year ago.
Petronas Dagangan added 26 sen to RM23.42 and Petronas Gas gained 14 sen to RM22.26.
As for plantations, KL Kepong added 16 sen to RM23.68.
Consumer stocks were mixed, with Dutch Lady
up 64 sen to RM59.20 and BAT added 56 sen to RM50.32 but F&N fell 30 sen to RM24.10, Carlsberg lost 14 sen to RM14.86, Apollo 12 sen to RM6 and Heneiken 10 sen lower at RM18.20.
Poultry company Lay Hong fell the most, down 39 sen to RM9.36 while furniture maker Latitude lost 30 sen to RM4.80.
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