Plantations power KLCI as CPO hits highest since March 2017

  • Markets
  • Friday, 06 Dec 2019

KUALA LUMPUR: The rally in crude palm oil (CPO) prices underpinned the plantations advance and helped lift the FBM KLCI while the broader market perked up in line with the key Asian markets on hopes of a US-China trade deal.

The KLCI closed up 4.86 points or 0.31% to 1,568.44. Turnover was 2.49 billion shares valued at RM1.54bil. The broader market improved with 497 gainers, 355 losers and 363 counters unchanged.

Emerging-market stocks touched a one-week high, tracking global equities higher, as trade optimism grew after encouraging comments from US President Donald Trump, Reuters reported. With less than 10 days left before additional US tariffs are imposed on Chinese goods, markets are still hoping for a phase-one trade deal.

Japan's Nikkei 225 rose 0.23%, Hong Kong's Hang Seng Index added 1.07%, the Shanghai Composite 0.43%. Taiwan's TAIEX 0.13%, South Korea's Kospi 1,02% and Singapore's STI gained 0.65%.

At Bursa, Tenaga rose 16 sen to RM13.42 and lifted the KLCI 1.61 points. Sime Darby and Genting added one sen each to RM2.37 and RM5.78 but GentingM fell three sen to RM3.17 and MAHB lost 11 sen to RM8.15.

MISC rallied 18 sen to RM8.33 and added 1.42 points after its unit AET Tanker Holdings Sdn Bhd secured three long-term time charter contracts from Brazil Shipping I Ltd valued at US$245mil (RM1.02bil).

CPO for third month delivery rose RM66 to RM2,831 per tonne – the highest since March 2017.

Among the plantations, Sime Darby Plantations climbed 13 sen to RM5.28 and added 1.58 points to the KLCI. Sime Plantation's board of directors had on Friday approved the divestment of the entire 100% stake in Sime Darby Plantation Liberia Inc. (SDPL) to Mano Palm Oil Industries (MPOI).

KL Kepong was the best performer, advancing 42 sen to RM24.16 and added 0.8 of a point, IOI Corp added fivesen to RM4.48. PPB Group eight sen to RM18.32.

As for banks, Public Bank came under selling pressure, falling 18 sen to RM19.16 and erasing 1.23 points. The Vanguard Group and the Employees Provident Fund had been reducing their stakes in the bank.

Maybank shed three sen to RM8.50. Hong Leong Bank 10 sen to RM16.80 and RHB Bank two sen lower at RM5.64 but AmBank added three sen to RM3.88 and CIMB two sen to RM5.20.

US light crude oil fell eight cents to US$58.35 and Brent two cents to US$63.37.

Petronas Dagangan fell 50 sen to RM22.34 and wiped out 1.16 points and Petronas Chemicals' four sen loss erased 0.56 of a point but Petronas Gas gained 30 sen to RM15.80 and gave the KLCI a one point boost. Dialog added six sen to RM3.45.

As for telcos, Maxis gained five sen to RM5.14, Digi three sen to RN4.54 but Axiata lost two sen to RM4.21.

Spot gold fell US$1.64 to US$1,474.36 per troy ounce.

The ringgit rallied 0.19% against the US dollar to 4.1605, it gained 0.29% versus the pound sterling to 5.463, it advanced 0.11% versus to the euro to 4.6204. It climbed 0.14% to the Singapore dollar to 3.0590.

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