Blue-chip buying lifts CI by 6 points


  • Business
  • Wednesday, 08 Oct 2003

BY ELAINE ANG

FRESH buying interest in blue-chip stocks helped send the KLSE Composite Index (CI) up 5.82 points or 0.78% yesterday to 748.55 – its highest close since Sept 9. 

OSK Research Sdn Bhd head of research Pankaj Kumar said the KLSE appeared to be playing catch-up after lagging other Asian markets like Singapore over the past few months. 

“Investors have started to come into the market again to see if there are value buys, with strong interest in blue-chip stocks,” he said. 

Noting that there was some foreign buying interest yesterday, Pankaj said he expected a bigger flow of foreign funds into the market soon. “With a low beta and ample liquidity in the market, the foreign funds, seeing a rise in upside potential, would come in,” he said. 

Pankaj remains positive about the market and believes there is still value to be obtained from it. “Investors should continue to accumulate shares as the CI plays catch-up with the rest of Asia,” he said. OSK Research is projecting a 10% rise for the market, with the CI seen hitting the 810-point mark by year's end. 

Mayban Securities general manager of dealing Wan Ahmad Satria said the market had been in a consolidation phase for the past two weeks, and this would build a base for the next run-up. 

He said there had been rotational play out of the oil and gas sector into property and construction, water and banking sectors, and that “the switch has pushed the CI higher.” 

Going forward, Ahmad sees the market continuing on an uptrend with sentiment boosted by the strong performance on Wall Street and the smooth political transition at home at the end of the month. 

Blue chips were traded mostly higher yesterday. Genting rose 20 sen to RM15.70 and Commerce Asset-Holding Bhd gained 6 sen to RM3.72. Tanjong plc went up 25 sen to RM9.85, Computer Systems Advisers (M) Bhd jumped 14 sen to RM4.56, and Malaysian Pacific Industries Bhd gained 20 sen to RM16. 

Following Monday's gains by property counters, investors also turned their attention yesterday to cement makers like Lafarge Malayan Cement Bhd and YTL Cement Bhd. 

Lafarge Malayan Cement, which controls half the country's cement market, closed 6 sen higher at 88 sen while YTL Cement gained 6 sen to RM4.46. 

For latest KLSE indices and other information click here

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Business News

Asian shares extend gains on recovery hopes, following stellar November
November manufacturing PMI dips to lowest since May
Stellar rebound sees KLCI reclaim previous day's losses
Australia central bank holds rates as housing market booms
Ringgit opens easier ahead of Opec output cut decision
Bursa Malaysia proves resilience, KLCI up 35pt
Public Mutual declares RM263m in distributions for 11 funds
After hammering by foreign selling, market recoups half of losses
Kenanga reiterates 'outperform' on RHB
Kenanga downgrades AMMB to 'market perform' on high credit cost guidance

Stories You'll Enjoy