Public Bank soars as KLCI closes at three month high

Public Bank recorded the highest net money inflow of RM22.89m last week.

KUALA LUMPUR: Late fund buying of Public Bank – sending it to a record close -- underpinned the FBM KLCI's advance on Thursday as it closed at a three month high of 1,810.

At 5pm, the KLCI was up 12.76 points or 0.71% – the highest since May 23 – as investors draw confidence in the government's moves to strengthen the economy.

Turnover was 2.25 billion shares valued at RM2.46bil. There were 485 gainers, 419 losers and 430 counters unchanged. 

Stock market data showed foreign funds were net buyers at RM77.3mil while local institutions and retail investors were net sellers at RM54mil and RM23.9mil.

UOB Kay Hian Malaysia Research said there was no change to its 2.5% earnings growth and end-2018 KLCI target of 1,750, which was based on a 14.9 times 2019F price-to-earnings target (10-year mean valuation). 

“The cancellations of ECRL (East Coast Rail Link) and the federal government’s worse-than-expected fiscal situation have largely been reflected in reduced corporate earnings expectations and the ringgit’s slide against the US
dollar. 

“The equity market has factored in and braced for potentially further modest earnings downgrades and weakening of the ringgit. Nevertheless, ample domestic liquidity should continue to support the market,” it said.

Public Bank rose 64 sen to RM25.32 and pushed the KLCI up 4.43 points. Its market capitalisation rose to RM98.29bil.

Hong Leong Bank added 42 sen to RM19.80, HLFG gained 24 sen to RM18.34, RHB Bank 11 sen to RM5.21 and CIMB Bank five sen to RM5.94 but Maybanbk fell one sen to RM9.81. 

As for telcos, Axiata rose 13 sen to RM4.62 and nudged the KLCI up 2.10 point, Digi gained eight sen to RM4.78, Maxis edged up one sen to RM5.82 and Telekom was flat at RM3.60.

Sime Plantation rose nine sen to RM5.33, Sime Darby was flat at RM2.60 and Sime Property two sen to RM1.30.

Crude palm oil for third month delivery fell RM24 to RM2,217 per tonne. IOI Corp gained eight sen to RM4.59, PPB Group two sen to RM16.78 and KL Kepong flat ay RM24.70.

Consumer stocks also fared well with BAT up 74 sen to RM37.20, Nestle 60 sen to RM147 and Carlsberg 50 sen to RM20.40. Kawan Food fell 15 sen to RM2.30.

My EG rose eight sen to RM1.39 with 132.9 million shares done as investors turned positive about its outlook.

MAHB was the top loser, down 20 sen to RM9.10 as worries about the impact from the Turkish operations weighed. 

Tenaga was flat at RM15.74. Genting Malaysia rose three sen to RM5.13 and Genting two sen higher at RM8.64.

US light crude oil fell 14 cents to US$67.72 and Brent slipped 37 cents to US$74.41. Petronas Dagangan rose 16 sen to RM26.80 Petronas Chemical fell three sen to RM9.35 and Petronas Gas lost 20 sen to RM18.80. Dialog shed three sen to RM3.42.but

The ringgit weakened against the US dollar by 0.2% to 4.1050 and slipped 0.15% against the pound sterling to 5.2860 and lost 0.12% to the euro to 4.7471. However, it inched up 0.02% to the Singapore dollar 2.9963.