KUALA LUMPUR: Key Asian markets except Hong Kong chalked up gains at midday on Thursday as crude oil prices recovered while the FBM KLCI entered the positive territory for 2016.
At midday, the KLCI was up 4.94 points or 0.29% to 1,695.97 – and is up 0.2% year-to-date. Turnover was 1.07 billion shares valued at RM1.06bil. The broader market was mixed with 352 gainers, 341 losers and 333 counters unchanged.
A technical chartist said the positive momentum of the KLCI could continue and set the stage for the breakout beyond the 1,700 psychologically important level.
Indicators such as the stronger ringgit and mild recovery in the crude oil prices would underpin investor sentiment.
Oil prices edged up on Thursday as sentiment spread that a 20-month long market rout may have come to an end as production slows amid strong demand, Reuters reported.
US light crude rose seven cents to US$34.73 while Brent added three cents to US$36.96 a barrel.
The ringgit firmed up against the US dollar and Singapore unit. It rose to 4.1380 to the greenback – the highest since Feb 15 – from the previous close of 4.1670. It was at 2.9675 to the Singapore unit from 2.9705. However, it slipped against the pound sterling to 5.8230 from 5.8134.
Chinese shares held a firmer tone on Thursday morning, with continued strength in the property sector sustaining optimism after a 4 percent rally the day before and ahead of a key meeting of China's top legislature that starts on Saturday, Reuters reported.
At Bursa Malaysia, RHB Cap rose 29 sen to RM5.75 and Public Bank gained 16 sen to RM18.80 while HLFG gained 12 sen to RM14.28 and HL Bank four sen to RM13.20 while Maybank was flat at RM8.75. CIMB shed three sen to RM4.62.
Crude palm oil for third-month delivery fell RM15 to RM2,475 per tonne as the rally iun the ringgit reduced exports.
KL Kepong rose the most, up 32 sen to RM24.20, PPB Group 14 sen to RM16.32, IOI Corp added four sen to RM4.82 and Sime Darby one sen to RM7.91.
AirAsia rose seven sen to RM1.70 with 70.78 million shares done, extending its momentum over its turnaround prospects while AirAsia X
inched up 0.5 sen to 28 sen and its warrants two sen to 11 sen.
As for the oil and gas stocks, Petronas Chemicals rose six sen to RM6.96, Petronas Gas flat at RM22.34 but Petronas Dagangan shed six sen to RM24.94 while SK Petro gained six sen to RM2.11.
Tenaga rose eight sen to RM1`3.30, Genting Malaysia was flat at RM4.32 and Genting Bhd lost two sen to RM8.37.
CMSB fell the most, sliding 18 sen to RM4.87 with 3.60 million shares done. Maybank Invetsment Bank Research downgraded its call on the stock to a Hold from Buy previously.
Globetronics lost 10 sen to RM5.52 and KESM nine sen to RM4.17. As for Top Glove and IJM Corp, both stocks fell seven sen each to RM5.52 and RM3.40.
Among the key regional markets,
Japan’s Nikkei 225 rose 1% to 16,913.66;
Hong Kong’s Hang Seng Index fell 0.45% to 19,914.18;
CSI 300 added 0.06% to 3,053.06;
Shanghai’s Composite Index added 0.23% to 2,856.14;
Shenzhen Composite gained 0.72% to 1,773.33;
Hang Seng China Enterprise she d0.03% to 8,371.99;
Taiwan’s Taiex adde d0.41% to 8,579.49;
South Korea’s Kospi added 0.18% to 1,950.92 and
Singapore’s Straits Times Index jumped 1.78% to 2,775.55.
Spot gold fell 71 cents to US$1,239.27.
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