KUALA LUMPUR: Plantations helped lead the Malaysian stock market to a higher close on Friday as crude palm oil (CPO) futures rallied to the September 2012 highs of RM3,025 per tonne.
Underpinning the FBM KLCI's late advance were Malayan Banking Bhd
, Maxis Bhd, Genting Malaysia and Sime Darby.
At 5pm, the KLCI was up 3.05 points or 0.19% to 1,627.26. Turnover was 1.28 billion shares valued at RM1.24bil. There 347 gainers, 402 losers and 331 counters unchanged.
The mild rebound in the local stock market was supported by the slightly positive investor sentiment in key regional markets.
Restraining the advance was the weak ringgit, which was quoted at 4.4605 to the US dollar from the previous close of 4.4602; it fell against the pound sterling to 5.5525 from 5.5395 and slumped against the Singapore dollar to 3.12809 from 3.1111. Against the Euro, it slipped to 4.7340 from 4.7075.
Reuters reported Hong Kong stocks had their best week in 1-1/2 months, with the benchmark index closing at a two-week high on Friday, partly aided by steady money inflows from China as a cross-border link will be launched soon.
China's leading share index capped its best week in nearly six months on Friday as investors continued to scoop up blue-chips on signs that the economy is on steadier footing.
CPO for third month delivery rose RM21 to RM3,025 per tonne.
Bloomberg reported Godrej International Ltd.’s Dorab Mistry as saying palm oil may extend its bull market surge into next year as tight supply and a weak Malaysian ringgit boost demand for the world’s most-consumed cooking oil.
Benchmark crude palm oil on Bursa Malaysia Derivatives will trade between RM3,000 and RM3,300 until the end of the first quarter, said Mistry, who has traded vegetable oils for three decades.
“Prices may top RM3,300 on a weaker ringgit. The outlook compares with a Nov. 9 forecast for prices to drop to RM2,500 by the end of 2016”.
KL Kepong rose 36 sen to RM24.10, Genting Plantations added 16 sen to RM10.70, Far East gained 15 sen to RM8.20, SOP 13 sen to RM3.69 and Innoprise 12 sen up to RM1.24. PPB Group added 10 sen to RM15.80 while IOI Corp fell two sen to RM4.36.
Sime Darby added six sen to RM8.10 after announcing its strong set of first quarter earnings.
The conglomerate's president and group chief executive Tan Sri Mohd Bakke Salleh said Sime Darby being a conglomerate may not be best structure for market valuations.
He said at a briefing that it was considering to create one or two industry-focused companies for separate listings. For instance, the plantation division may be right choice due to better CPO
price and long term fundamentals and the property business could be suitable for separate listing at later stage.
Among the consumer stocks, BAT added 72 sen to RM44.58 but Dutch Lady fell 88 sen to RM55.36, F&N 28 sen lower at RM23.32, Nestle 26 sen to RM76.74, Apollo and Carlsberg each gave up 16 sen to RM5.84 and RM14.14.
As for banks, Maybank rose 10 sen to RM7.80 and boosted the KLCI by 1.73 points, CIMB and RHB Bank added two sen each to RM4.66 and RM13.24 but Public Bank shed six sen to RM19.50.
Axiata continued to lose ground, shedding five sen to RM4.26, Telekom lost seven sen to RM6.22, Digi was flat at RM4.97 and Maxis gained eight sen to RM5.86 and gave the KLCI a 1.02 point boost.
Genting Malaysia rose 10 sen to RM4.73 but Genting Bhd fell six sen to RM8 as analysts said Genting Malaysia offered more upside.
US light crude oil fell 28 sen to RM47.68 and Brent was down 38 sen to US$48.62. Petronas Gas lost eight sen to RM21.36, Petronas Chemicals fell six sen to RM6.79 and Petronas Dagangan lost two sen to RM23.58. SapuraKencana was down three sen to RM1.44.
US spot gold rose US$5.58 to US$1,187.25.
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