KL market stages strong rebound


  • Business
  • Tuesday, 02 Dec 2003

BY ELAINE ANG

THE local stock market broke out from its consolidation phase of the past month to stage a strong rebound yesterday, sending the KLSE Composite Index (CI) 1.45% or 11.28 points up to a two-week high of 790.56. 

The volume of shares traded also increased, rising to 618.3 million compared with 464 million last Friday, with gainers outnumbering losers about 7:1. 

And analysts appear confident that the marker is poised to continue its rally. 

OSK Research assistant general manager Pankaj Kumar said “it's back to business” again with the Hari Raya holidays over. 

“With the regional markets picking up, pretty good corporate results coming out and the economy showing signs of a turnaround, investors are looking at opportunities,” he said. 

He said the positive third-quarter financial results reported by listed companies were an indicator for investors to return to the market. 

“The results do justify the (share) prices. In addition, our stocks have good fundamentals...it all looks promising for investors to come in,” he said, adding that investors appeared to favour stocks in such sectors as gaming, consumer and transport. 

Pankaj remains positive about the market outlook for the month and expects the CI to breach the 800-point barrier again. “The critical level is 817, which was the level that the market pulled back from the last time. If this is surpassed, then we expect the CI to hit 825 by year-end,” he said. 

Hwang-DBS Asset Management Sdn Bhd portfolio manager David Ng said the market had rebounded from an oversold position in the last two weeks. 

“The local market is also moving in line with the regional markets,” he said, adding that the buying was mainly by local investors. 

Tokyo's Nikkei 225 jumped 3% to 10,403 yesterday, Singapore's Straits Times Index rose 1.39% to 1,737, Hong Kong's Hang Seng Index gained 1.13% to 12,457 and Seoul's Kospi closed 1.41% higher at 807. 

Ng said banking stocks like AMMB Holdings Bhd and Malayan Banking Bhd were quite well supported yesterday, followed by second liners. 

Ng said although the market still had its upside, he did not expect another sharp rebound like yesterday's going forward.  

He is generally positive about the market for the month on expectations of the traditional window-dressing for the year-end book closing, with a preference for the banking and property sectors. 

A head of research at a foreign stockbroking company said the market had “consolidated enough” in the past month and was poised for a comeback.  

“Investors are looking for bargains as some of our stocks have dropped by 30% to 40%,” he said. 

Second board–listed Eden Enterprises (M) Bhd was the most active counter yesterday, with 36.5 million shares changing hands, followed by Idaman Unggul Bhd with a volume of 22 million shares. 

The day's top gainer was Mentakab Rubber Co (M) Bhd, which jumped RM1.50 or 2.84% to RM54.25 on volume of 7,600 shares. Other big gainers included Malaysian Pacific Industries Bhd, up 50 sen to RM17.50; Malaysia International Shipping Corp Bhd, 30 sen higher at RM11.10; and Crest Petroleum Bhd, up 40 sen to RM17.  

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