Maybank powers KLCI higher early Tuesday, ringgit firmer

Bursa Malaysia joined the key Asian markets recovery as they notched gains of between 0.4% and 2.25% with Dialog, telcos, glove makers and Maybank underpinning the advance.

KUALA LUMPUR: Maybank gave the FBM KLCI a significant boost early Tuesday while the broader market was firmer but investor sentiment could remain cautious due to recent late selling pressure. 

At 9.17am, the KLCI was up 4.63 points or 0.27% to 1,742.12. Turnover was 192.76 million shares valued at RM100.69mil. There were 191 gainers, 116 losers and 229 counters unchanged.

The ringgit edged up 0.1% to the US dollar to 4.186 from the previous close of 4.19.

Asian stocks wobbled on Tuesday as investors awaited developments in U.S. tax reform efforts, while contemplating if a marked flattening in the U.S. yield curve might ultimately be a harbinger of an economic slowdown there, Reuters reported.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.25% after two sessions of declines, while Australia fell 0.9%.

Japan's Nikkei was choppy, down 0.1% to add to four sessions of losses.

At Bursa, Maybank rose 22 sen to RM9.38 with 1.32 million shares done.

Maybank targets to be “Digital Bank of Choice” as part of the group’s five key strategic objectives for Maybank 2020. The initiative aims to enhance customers experience and to target more technically savvy customers, e.g. millennials.

MIDF Research is retaining its Buy call for Maybank with an unchanged target price of RM10.30 based on price-to-book multiple of 1.4 times.

Petronas Chemicals added seven sen to RM7.52.

Nestle surged RM6.04 to RM94.64, SP Setia added 28 sen to RM3.53, Dayang 17.5 sen  to 71 sen while UMW gained 15 sen to RM5.27.

Pentamaster and Hengyuan added 10 sen to RM4.96 and RM10.70 while Turbo jumped 7.5 sen to 87 sen.

PPB Group fell the most, down 20 sen to RM16.52 with 600 shares done after its associate posted lower earnings and also due to the fall in crude palm oil futures. IOI Corp lost nine sen to RM4.33.

Poly Glass Fibre fell nine sen to 48 sen, Orna eight sen to RM1.53 while MPI and MAHB were down four sen each to RM13.70 and RM8.25.