Tenaga, Genting lift KLCI ahead of Budget details

KUALA LUMPUR: Fund buying of Tenaga Nasional and Genting Bhd shored up the FBM KLCI at midday on Friday as the broader market improved ahead of the announcement of the Budget 2016 proposals at 3pm.

At midday, the KLCI was up 7.12 points or 0.42% to 1,712.21. Turnover was 1.38 billion shares valued at RM871.10mil. There were 418 gainers, 280 losers and 332 counters unchanged.

Prime Minister Datuk Seri Najib Tun Razak will deliver the Budget 2016 proposals from 3pm. He is expected to announce the government’s commitment to reduce the fiscal deficit amid a slower economic growth.

On the external front, China stocks were steady, as weakness in banking and energy heavyweights offset a second-day of gains for small-caps, according to Reuters.  But Hong Kong shares advanced more than 1%, tracking global markets after the European Central Bank (ECB) signalled more policy stimulus was on the cards.

The ringgit firmed up slightly against the US dollar, pound sterling and the Singapore dollar. It was quoted at 4.2300 to the greenback from the previous close of 4.2863 while against the pound sterling, it was at 6.5168 from 6.6296 and against the Singapore dollar it was at 3.0542 from 3.0784.

Tenaga rose eight sen to RM12.80and added 0.76 of a point to the KLCI. Genting Malaysia was up six sen to RM4.40 and added 0.6 of a point while Genting Bhd added five sen to RM7.52.

As for banks, RHB Cap added five sen to RM6.26, Public Bank and Hong Leong Bank rose four sen each to RM18.65 and RM14.20, CIMB rose three sen to RM4.92 and Maybank inched up one sen to RM8.60. However, BIMB shed seven sen to RM4.13.

Plantations were higher despite the pullback in crude palm oil prices. CPO for third month delivery fell RM47 to RM2,324. KL Kepong rose 28 sen to RM23.12, PPB Group 12 sen to RM15.90 while Sime Darby added five sen to RM8.60.

BAT was the top gainer, up 92 sen to RM63.04. Other gainers were OIB, up 27 sen to RM3.59, Can-One added 14 sen to RM3.05 while Success gained 12 sen to RM2.06.

SAM Engineering slipped 13 sen to RM7.77 after the recent run-up in the share price.

Among the telcos, Maxis rose three sen to RM6.78, Axiata added one sen to RM6.35, DiGi was flat at RM5.63, Telekom lost one sen to RM6.82.

Oil prices extended gains into a second day in Asian trade on Friday, finding support from brighter economic data and a global stock market rally after the European Central Bank signalled its willingness to launch more stimulus measures.

US light crude oil recovered slightly to add 12 cents to US$45.50 and Brent rose 29 cents to US$48.37. KNM rose 1.5 sen to 55 sen and Sumatech edged up 0.5 sen to 15.5 sen in active trade.

Petronas Gas rose eight sen to RM23.42 and Petronas Chemicals four sen to RM6.45 while Petronas Dagangan was flat at RM23.30 and SK Petro two sen hgher at RM2.13.