CIMB, KL Kepong enable KLCI to eke out slight gains

KL Kepong was the top gainer, up 56 sen to RM23.44 and nudged the KLCI up 0.92 of a point.

KUALA LUMPUR: CIMB Group and KL Kepong enabled the FBM KLCI to close marginally higher on Wednesday after a volatile session while the broader market was slightly firmer, with AirAsia attracting heavy trading interest.

At 5pm, the KLCI was up 0.99 of a point or 0.06% to 1,536.79. Turnover was 3.06 billion shares valued at RM2.68bil. There were 514 gainers 344 losers and 395 counters unchanged.

The market capitalisation of the 30 KLCI stocks was reduced to RM989.42bil.

Key Asian markets closed higher on expectations of more central bank stimulus. This helped investors look past a mounting coronavirus death toll and policymakers' concerns for the disease's economic impact, according to Reuters.

Already, billions of dollars pumped in by Chinese authorities to cushion the blow from the outbreak, along with stringent containment measures, have boosting mainland China indexes more than 1% and lifted Hong Kong shares.

Crude palm oil for third month delivery rallied RM117 to RM2,785 per tonne on expectations of lower stockpiles in January.

Malaysian palm oil inventories likely tumbled to its lowest since June 2017, as dry weather and lower fertiliser usage in the second largest palm producer early last year suppressed output to near four-year lows, a Reuters surveyed showed.

January stockpiles in Malaysia are forecast to fall 12% to 1.76 million tonnes from December, the lowest in two and a half years, according to a median estimate of nine planters, traders and analysts polled by Reuters.

KL Kepong was the top gainer, up 56 sen to RM23.44 and nudged the KLCI up 0.92 of a point. Ayer Hitam rose 28 sen to RM4.90 and Sarawak Oil Palm 23 sen to RM3.64. Sime Plantation added two sen to RM5.10, PPB Group flat at RM18.76 but IOI Corp shed four sen to RM4.45.

Among the banks, CIMB rose six sen to RM4.98, AmBank three sen to RM3.83 but Maybank shed four sen to RM8.36, Hong Leong Bank lost two sen to RM15.98 and RHB one bank to RM5.70. Public Bank lost 20 sen to RM18 and erased 1.20 points.

Bank Negara announced Maybank, CIMB and Public Bank were deemed as domestic systemically important banks (D-SIB) under its policy document issued on Wednesday.

Tenaga Nasional rose four sen to RM12.76 and added 0.35 of a point, MISC rose 11 sen to RM7.96, Sime Darby three sen to RM2.18 while IHH Healthcare gained one sen to RM5.73. Genting was down eight sen to RM5.30 and GentingM three sen lower at RM2.94.

US light crude oil rebounded US$1.16 to US$50.77 and Brent US$1.35 higher at US$55.31.

Petronas Gas lost 18 sen to RM16.28 and Petronas Chemicals one sen lower at RM643 but Petronas Dagangan added 14 sen to RM22.32. Dialog gained nine sen to RM3.40.

As for semicon and tech stocks, KESM ended 31 sen higher at RM9.86 and Vitrox 19 sen tp RM9.37.

AirAsia was the most active stocks with 192.53 million shares done, rising one sen to RM1.16.

Japan's Nikkei 225 rose 1.02%, Hong Kong's Hang Seng Index added 0.42%, CSI 300 jumped 1.13%, Shanghai Composite 1.25%, Taiwan;'s Taiex 0.13%, South Korea's Kospi 0.36% abd Singapore's STI 1.38%.

Singapore dollar fell against major currencies. The Monetary Authority Of Singapore, which eased policy for the first time in three years at its last meeting in October, said its key currency gauge had been trading near the top of its policy band, and therefore, has room to depreciate to accommodate any economic hit.

"There is sufficient room within the policy band to accommodate an easing of the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) in line with the weakening of economic conditions as a result of the outbreak of the 2019 novel coronavirus in China and other countries, including Singapore," MAS said in a statement responding to media queries, Reuters reported.

The ringgit rose 0.51% against the Singapore unit to 2.9864. However, it fell 0.15% against the US dollar to 4.1165; skidded 0.72% 5.3798 and shed 0.13% to 4.5525.