Blue-chip buying lifts CI by 6 points

  • Business
  • Wednesday, 08 Oct 2003


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. 

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