KUALA LUMPUR: Blue chips eked out some slight gains early Friday after a hesitant start with FBM KLCI component stock BAT the top gainer after the release of its second quarter results the previous day.
At 9.25am, the KLCI was up 0.77 of a point or 0.04% to 1,756.40. Turnover was 200.89 million shares valued at RM97.96mil. There were 181 gainers, 138 losers and 230 counters unchanged.
Hong Leong Investment Bank (HLIB) Research said Bursa’s trading tone could be subdued as market environment lacks fresh catalysts.
“We opine that the KLCI will consolidate within the range of 1,750-1760 over the near term. Nevertheless, trading interest is likely to be seen within the technology sector, tracking the gains in overnight Nasdaq performance,” it said.
Reuters reported the euro held near two-year highs against the dollar on Friday after the head of the European Central Bank said tapering of its stimulus will be on the table this autumn, while a solid global economic outlook kept Asian share prices near decade highs.
Signs of steady global growth, which have prompted the ECB and a couple of other major central banks to signal future tightening since last month, have kept the world's shares on firm footing, it said.
MSCI's broadest index of Asia-Pacific shares outside Japan, which has gained about 5% in the past two weeks, eased 0.1% as regional markets opened. Japan's Nikkei dropped 0.3% as the yen rose against the dollar.
At Bursa, BAT rose 42 sen to RM44.30 despite the weaker Q2 results but it may see cost savings from 2H17 onwards from sourcing tobacco products regionally. Affin Hwang Capital Research retained its Hold call with target price of RM43.50.
MAHB was also in focus, adding 16 sen to RM8.90 on expectations of stronger Q2 earnings as passenger traffic picks up.
Alcom
gained seven sen to RM1.82 while Time dotCom, LTKM and WZ Satu added six sen each to RM9.61, RM1.69 and RM1.14. Old Town, Hengyuan and Weida each gained five sen each to RM2.83, RM5.73 and RM2.05 respectively.
BIMB fell again, down eight sen to RM4.40 on concerns about financial firms’ exposure to troubled oil and gas (O&G) companies with debt problems.
StarBiz reported the recent missed payments by Perisai Petroleum Teknologi Bhd and Alam Maritim Resources Bhd may have sparked fears that Practice Note 17 company TH Heavy Engineering Bhd (THHE) could soon follow suit.
There is market fear that THHE, which has debt in excess of RM300mil, may be next to be unable to meet its debt obligation, Starbiz reported.
Genting Bhd fell eight sen to RM9.47, UPA seven sen to RM2.36, while Perak Corp and Tien Wah shed four sen each to RM1.70 and RM1.86.
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