KL shares end firmer
MALAYSIAN shares ended firmer today with persistent buying interest in key plantation stocks and selected heavyweights, an analyst said.

At 5pm, the benchmark Kuala Lumpur Composite Index (KLCI) rose 7.82 points or 0.61 per cent to 1,293.09 after opening 1.38 points lower or 0.1 per cent at 1,283.89.

The Industrial Index gained 11.82 points to 2,711.69, the Finance Index increased 38.91 points to 10,058.0 and the Plantation Index jumped 186.54 points to 7,907.52.

The FBMEmas added 46.92 points to 8,704.70 and the FBM30 climbed 69.03 points to 8,425.50. The FBM2BRD declined 12.05 points to 5,863.59 and the FBM-MDQ dropped 48.09 points to 4,849.51.

Advancers led decliners 331 to 325 while 260 counters were unchanged, 507 untraded and 28 suspended.

Turnover declined to 497.195 million shares valued at RM1.152 billion from 509.863 million shares worth RM1.018 billion last Friday.

The analyst said the market could surpass the 1,300-point level should the Malaysian bourse sustain the current upward trend.

“Plantation and oil & gas stocks could be favoured again as commodity prices have resumed their upward trend, providing the catalyst for a market rebound,” he said.

“The current high crude oil price, which is trading above US$125 per barrel, will continue to support the oil & gas and the energy-related commodities, including soyoil and CPO (crude palm oil) prices.”

Both the oil & gas and the plantation stocks collectively account for about 30 per cent of the KLCI market capitalisation.

“(However), it is unclear how high the technically-driven crude oil (and hence CPO) prices can reach, but expect steep corrections thereafter,” the analyst said.

“While we could see stable to rising momentum in plantation stocks in the immediate future, we remain concerned that rising oil prices will lead to equity market crashes and a significant sector de-rating.”

Another analyst said the abolition of ceiling prices for steel bars and billets is expected to provide an impetus to the market as it should further enhance the transparency issues that have been plaguing the industry.

“The relaxation of steel imports will address concerns over the shortage of certain steel products and create a more competitive pricing environment, thus benefiting the steel related counters,” he added.

One of the steel related counters, Kinsteel, climbed four sen to RM1.59.

Tradewinds Plantations jumped 22 sen, or 5.7 per cent, to RM4.06, the second-largest gainer on the benchmark stock index. Kuala Lumpur Kepong added 50 sen, or 3 per cent, to RM17.30, the sixth-best performer on the stock index.

Palm oil futures jumped as much as 3.7 per cent after record crude oil prices and the outlook for tighter soybean oil supply boosted the appeal of the commodity for biofuels and food.

Southern Steel rose 14 sen, or 4.6 per cent, to RM3.20, its highest level since November 1997. Ann Joo Resources climbed 6 sen, or 1.6 per cent, to RM3.88. Kinsteel added 4 sen, or 2.6 per cent, to RM1.59. Lion Industries advanced 18 sen, or 7.1 per cent, to RM2.70, the biggest gainer on the benchmark Composite Index.

Malaysia scrapped the ceiling price on steel bars and billets and eased import and export restrictions after global prices surged.

Lafarge Malayan Cement, Malaysia’s biggest cement maker, rose 16 sen, or 3.8 per cent, to RM4.36, its steepest gain since May 7, amid speculation similar price controls will be lifted after the government removed the ceiling price on steel bars and billets. YTL Cement added 16 sen, or 3.7 per cent, to RM4.50. On May 8, the government said it may ease price and import and export controls on the steel and cement industries. - Bernama, Bloomberg