Shares surge 2.7pc

With a lot of pent-up demand from investors now, the Malaysian bourse will be on the rebound for the next couple of weeks, says a research head

MALAYSIAN shares closed higher today with investors buying into both heavyweights and lower liners following overnight gains on Wall Street and lower crude oil prices, dealers said.

At 5pm, the benchmark Kuala Lumpur Composite Index surged 29.84, or 2.7 per cent, to close at 1,139.41, its steepest advance since March 11.

The key index traded between the 1,116.1 and 1,139.41 level throughout the day.

Eight stocks rose for each that fell on the 100-member benchmark index. The July index futures jumped 3.6 per cent to 1,142.00.

Volume doubled to 656.377 million shares valued at RM1.179 billion from yesterday’s close of 329.505 million shares traded valued at RM783.748 million.

According to some analysts, the uptrend in the local market will last for a couple of weeks as crude oil is expected to be traded sideways in the next three months.

Jupiter Securities’ head of research Pong Teng Siew said with a lot of pent-up demand from investors now, the bourse will be on the rebound for the next couple of weeks “and to be interrupted by some profit-taking here and there”.

He said the falling crude oil price also did not bode well for the crude palm oil (CPO) stocks which usually carry the weightage for the benchmark index.

AirAsia Bhd, Southeast Asia's largest low-cost carrier, jumped 12.5 sen, or 14 per cent, to RM1.04, its biggest advance since November 11, 2004, on speculation a decline in crude oil will lower fuel costs. Malaysian Airline System Bhd, the biggest carrier, added 22 sen, or 6.6 per cent, to RM3.56, its steepest gain since October 31, 2007.

Crude oil for August delivery dropped US$3.09 a barrel to US$127.95 a barrel yesterday, the lowest price since June 5.

Kuala Lumpur Kepong Bhd, the third-biggest planter in Malaysia, dropped 10 sen, 0.7 per cent, to RM13.60, the fifth-worst performer on the Kuala Lumpur Composite. Tradewinds Plantation Bhd slid 8 sen, or 2.2 per cent, to RM3.56, the index's biggest decliner.

Palm oil futures slumped 5.1 per cent today, the steepest drop since April 1. The decline extends a four-day slump as crude oil slid, reducing the appeal of palm oil as an alternative fuel.

DiGi.Com Bhd climbed 20 sen, or 0.9 per cent, to RM23.80, its highest since July 17. Malaysia's second-biggest listed mobile-phone operator said second-quarter profit rose 19 per cent to RM298.4 million (US$92 million) from a year earlier, after it signed up more subscribers.

JT International Bhd advanced 26 sen, or 6.2 per cent, to RM4.48, its biggest gain since May 8. Malaysia's second-largest publicly traded cigarette maker said it plans to return RM196.2 million to shareholders by paying 75 sen in cash for each share held.

KNM Group Bhd rose 10 sen, or 6 per cent, to RM1.82, the most since May 30. The maker of process equipment for the oil and gas industry has an orderbook of RM4.2 billion and is bidding for RM20 billion of contracts, focusing on higher-margin projects, HwangDBS Vickers Research Sdn Bhd said in a report today. - Agencies