Public Bank, RHB Cap lift KLCI

KUALA LUMPUR: The FBM KLCI staged a mild rebound in early Tuesday trade, underpinned by some buying of Public Bank and RHB Capital for the second day while overall investor sentiment perked up after the firmer overnight close on Wall Street.

At 9.11am, the FBM KLCI was up 2.0 points to 1,863.75. Turnover was 349.21 million shares valued at RM125.38mil.  There were 207 gainers, 86 losers and 233 counters unchanged.

However, BIMB Securities Research expects the market to be range bound as investors will be looking at the corporate results for 2Q14.

On Monday, the KLCI slipped from apparent profit taking by the foreign funds as there was a net foreign outflow of RM59.8mil. “Thus, we expect the index to hover between the 1,860 and 1,865 levels,” it said.

Overnight on Wall Street, the DJI Average ended the day at 16,838.74, up 175.83 points as investor sentiment was boosted by better corporate earnings and improved economic data in the US.

At Bursa Malaysia, Public Bank and rose 10 sen to RM19.34 while RHB Cap edged up nine sen to RM9.37 with 100 shares done.

Star Publications rose 11 sen to RM2.71 after reporting a strong set of second quarter results and declaring dividends totaling nine sen a share.

CIMB Equities Research said the media group’s 1H14 core net profit was in line with its expectation, making up 48% of its and 45% of consensus full-year estimates.

“Star is moving in the right direction in reducing its dependency on print, which accounted for more than 70% of the group’s revenue, by growing its digital, TV, radio and event segments.

“Revenue contribution from the print and digital segment has gradually eased from 78% in 1H13 to 73% in 1H14,” it said.

Other gainers were UMW, up eight sen to RM12.44 and Scientex gained seven sen to RM6.67.

Petronas Gas slipped 16 sen to RM22.38 with 6,300 shares done.

Among plantations, KL Kepong fell 12 sen to RM23, TSH Resources lost four sen to RM3.44 and IOI Coorp three sen to RM4.96.

Tune Insurance lost seven sen to RM2.40 after net profit in the second quarter fell 12% on-year due to higher operating costs and provision for share of Malaysian Motor Insurance Pool.

Wing Tai Malaysia lost six sen to RM2.25. AllianceDBS Research is maintaining its Hold recommendation and lowered its FY15-16F earnings by 25% and 27% to incorporate weaker retailing margins and lower property sales for its high-end projects. 

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