KLCI extends gains, boost from CPO as ringgit slumps

KUALA LUMPUR: The FBM KLCI extended its gains on Thursday, underpinned by plantations’ strong gains following the rally in crude palm oil price while the ringgit continued to lose ground.

At 5pm, the KLCI was up 12.89 points or 0.8% to 1,633.93. Turnover was 1.51 billion shares valued at RM1.82bil. Advancers led decliners 465 to 306 while 302 counters were unchanged.

CPO for third month delivery rose RM62 to RM2,437 per tonne. 

StarBiz reported that apart from the weak ringgit, positive factors which are creating excitement in the CPO market right now include the strengthening El Nino, the attractive CPO price discount at US$170-US$180 per tonne to soybean, and India poised to make an all-time record import of up to 10 million tonnes of CPO this year, according to palm oil experts.

IOI Corp rose 33 sen to RM4.40 and was the biggest mover among the KLCI stocks, pushing the index up 3.66 points. Plantation-property heavyweight Sime Darby gained 26 sen to RM8.05 and added 2.77 points.

KL Kepong rose 58 sen to RM22.28 and nudged the KLCI up 1.06 points. However, PPB Group fell six sen to RM15.36.

The ringgit weakened against the US dollar to 4.4067 from 4.3950 while its declined against the pound sterling to 6.6746 from 6.6706 but it firmed up against the Singapore unit to 3.0860 from 3.0887.

Genting Bhd added 17 sen to RM7.44, Genting Malaysia five sen to RM4.20 and Tenaga six sen to RM12.08.

US light crude oil rose 88 cents to US$45.97 and Brent 68 cents higher at US$49.05. Petronas Gas and Petronas Dagangan added 18 sen each to RM22.14 and RM22 but Petronas Chemicals shed eight sen to RM6.06. SKPetro shed two sen to RM1.86.

Among the banks, Public Bank bounced back with a 14 sen gain to RM17.66, Hong Leong Bank 14 sen to RM13.26, Ambank four sen to RM4.60, CIMB and RHB Cap three sen each to RM4.49 and RM5.98 but Maybank eased one sen to RM8.55.

As for telcos, TM gained seven sen to RM6.75, Maxis was flat at RM6.55,  DiGi and Axiata shed two sen each to RM5.53 and RM5.78.

MISC’s rally hit a speed bump, falling 13 sen to RM8.67 despite the positive outlook for the LNG carrier.

Scientex was the second best performer, jumping 48 sen to RM7.59 while Magni-Tech added 41 sen to RM5.60, SAM 32 sen to RM6 and KESM 30 sen to RM4.43.

Among the key regional markets,

Japan’s Nikkei 225 rose 1.92% to 17,722.42;

Taiwan’s Taiex added 1.4% to 8,295.94;

South Korea’s Kospi added 0.84% to 1,979.32 and

Singapore’s Straits Times Index rose 0.42% to 2,802.69.

Spot gold shed US$1.73 to US$1,113.35.