KUALA LUMPUR: Blue chips chalked up steady gains on Wednesday, aided by gains in Axiata Group, Genting Bhd
and CIMB Group and expectations are that the FBM KLCI could test the important 1,700 level.
At 5pm, the KLCI was up 3.24 points or 0.19% to 1,683.93. Turnover was 1.30 billion shares valued at RM1.81bil. The broader market was slightly firmer with 409 gainers, 327 losers and 375 counters unchanged.
A technical chartist said the KLCI was going to test the 1,700 resistance level in the immediate term, hinging on the steadier ringgit and firm oil prices.
Also underpinning the market would be the optimism on Wall Street and corporate earnings, he said.
The ringgit was mixed against the key currencies. It slipped to 4.4370 against the US dollar from the previous close of 4.4360. It fell against the pound sterling from 5.5592 from 5.5423.
However, it edged up against the Singapore dollar to 3.1238 from 3.1261 and advanced against the Euro to 4.7625 from 4.7677.
Most key Asian markets except Singapore ended higher. China stocks rose for the fourth straight day on Wednesday, although optimism over improving corporate earnings was offset by a surprise increase in rates on medium-term loans, Reuters reported.
Axiata continued its ascend, adding seven sen to RM4.91 and pushing the KLCI up 1.03 points after it was upgraded by BNP Paribas. Telekom rose eight sen to RM6.21, Maxis was flat at RM6.05 while Digi fell three sen to RM4.91.
As for the banks, CIMB, Public Bank and AmBank rose four sen each to RM4.96, RM20.20 and RM4.52 respectively, RHB Bank added three sen to RM4.95, Maybank one sen higher to RM8.33 while Hong Leong Bank was flat at RM13.20.
UMW rose 26 sen to RM5.42 after announcing its exit from the loss-making oil and gas sector. RAM Ratings said UMW's exit from the O&G industry will relieve the group of losses suffered by its O&G businesses.
CCM Duopharma Biotech jumped 21 sen to RM2.13 in active trade. It will deliver RM300mil of human insulin to the government over a three-year period under the Health Ministry's off-take agreement programme.Biocon Sdn Bhd will manufacture and supply the insulin while CCM DBio will be the reseller.
Caring rose 12 sen to RM1.48 after posting a strong set of results.
Oil prices fell on Wednesday after builds in US inventories reinforced expectations that increasing shale output this year would reduce the impact of production cuts by OPEC and other major exporters, Reuters said. US light crude oil fell 23 cents to US$52.95 and Brent was down 24 cents to US$55.20.
Petronas Gas rose 10 sen to RM20.30 while Petronas Dagangan and Petronas Chemicals were flat at RM23.40 and RM7.16.
Power giant Tenaga fell eight sen to RM13.80 and erased 0.74 of a point from the KLCI after investors decided to take profit after the release of its results on Tuesday.
IHH Healthcare lost nine sen to RM6.33, Genting Bhd lost two sen to RM8.40 but Genting Malaysia's climb of seven sen to RM4.97 pushed the KLCI up 0.68 of a point.
Crude palm oil for third-month delivery fell RM29 to RM3,120 per tonne. KL Kepong rose six sen to RM24.32, PPB Group four sen higher at RM16.40 and IOI Corp two sen to RM4.50. Sime Darby added two sen to RM8.70.
US spot gold fell US$5.88 to US$1,203.05 per ounce.
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