KLCI stretches gains to eight days, CIMB, Axiata advance

KUALA LUMPUR: Blue chips extended their rally for the eighth day on Wednesday, powered by CIMB, Axiata and Telekom Malaysia, aided by net foreign buying – believed to be the first since June 29 during the window-dressing activities for the second quarter.

At 5pm, the FBM KLCI was up 15.79 points or 0.91% to 1,753.07. Turnover was 2.63 billion shares valued at RM2.17bil. The broader market was firmer with advancers beat decliners two to one or 594 gainers, 295 losers and 423 counters unchanged.

This was the longest stretch of gains for the 30-stock index since it was hammered down by foreign funds after the Pakatan Harapan coalition ousted the Barisan Nasional government in the May 9 general election. 

According to stock market data, foreign funds were net buyers at RM71.7mil while local institutions and retail investors turned net sellers at RM40.3mil and RM31.4mil.

Recall that foreign funds had been selling down their stakes since May 14 when markets reopened.

Key Asian markets were mixed with Japan, Taiwan and Asean markets higher but Japan, Hong Kong and China recording losses.

CIMB rose 18 sen to RM5.85 and added 2.99 points to the KLCI, Public Bank 10 sen to RM23.70, RHB Bank three sen to RM5.34 while Maybank inched up two sen to RM9.60. Hong Leong Bank shed two sen to RM18.88 and HLFG was the top loser, down 22 sen to RM18.18.

Telcos continued their strong run with Axiata up 17 sen to RM4.40 and adding 2.73 points to the KLCI, Telekom added 22 sen to RM3.93 while Maxis inched up five sen to RM5.55 and Digi four sen to RM4.63.

Maxis posted net profit of RM478mil while revenue was at RM2.246bil in the second quarter ended June 30, 2018. It declared an interim dividend of five sen a share.

Tenaga was up 10 sen to RM14.88, Genting Malaysia nine sen to RM5.15 while Genting Bhd added seven sen to RM8.75.

Revenue Group made a strong impression on investors on its debut on the ACE Market, closing up nearly 70% or 25.5 sen to 62.5 sen. Its offer price was 37 sen.

Crude oil prices continued to lose ground as US light crude fell 51 cents to US$67.57 and Brent fell 54 cents to US$71.62. Though Petronas Dagangan fell four sen to RM25.76, Petronas Gas rose four sen to RM18.46 and Petronas Chemicals five sen to RM8.85. Dialog added two sen to RM3.27.

Crude palm oil for third month delivery bounced up RM35 to RM2,206 per tonne on expectations China would buy more palm oil from Malaysia.  IOI Corp and KL Kepong rose eight sen each to RM4.48 and RM24.36 while PPB Group was unchanged RM19.82.

Sime Plantation added two sen to RM5.25, Sime Darby one sen higher at RM2.39 while Sime Property unchanged at RM1.23.

The ringgit lost ground against the US dollar, down 0.31% to 4.0588 but rose against the pother currencies, surging 1.33% against the pound sterling to 5.2935, up 0.61% to the euro at 4.7197 and climbing 0.27% against the Singapore 

dollar at 2.9680.