KUALA LUMPUR: Key regional markets were higher at the midday break on Tuesday, Jan 5 underpinned by optimism of stronger economic growth while at Bursa Malaysia, banks and plantations nudged the FBM KLCI towards the 1,290 level.

At 12.30pm, the 30-stock FBM KLCI rose 12.69 points to 1,288.44 after hitting a high of 1,290.55 earlier. Turnover was 1.19 billion shares valued at RM1.12 billion, the highest in recent months during a morning session. Sentiment was firm with 581 advancers, 168 decliners and 176 stocks unchanged.

Oil rose 29 cents to US$81.80 while US spot gold added US$2.23 to US$1,123.43 while crude palm oil futures extended its gains, adding RM9 to RM2,710.

Hong Kong's Hang Seng Index rose 1.9% to 22,238.85, Shanghai's Composite Index added 1.21% to 3,282.86, Singapore's Straits Times Index gained 0.75% to 2,916.33 and Japan's Nikkei 225 0.68% higher at 10,726.78.

The bullish CPO prices and expectations of a stronger economic recovery saw funds picking up plantations and banks.

Among the 30-stock FBM KLCI, KL Kepong rose 36 sen to RM16.86, PPB 22 sen to RM16.22, IOI Corp 12 sen to RM5.59 and Sime Darby 10 sen to RM9.09.

Public Bank added 14 sen to RM11.34, CIMB 12 sen to RM12.98, Maybank six sen to RM6.92 and AMMB eight sen to RM5.11.  Tanjong rose 28 sen to RM17.56, Parkson 26 sen to RM5.65, IJM 22 sen to RM4.18, Genting 13 sen to RM7.59 and Genting Malaysia six sen to RM2.93.

Nestle was the top gainer, adding 44 sen to RM34.32 while Dutch Lady added 18 sen to RM11.80 as investors also sought out dividend stocks.

Compugates was the most active with 120.18 million shares done, up 0.5 sen to 7.5 sen. Tan Chong-CA jumped 12.5 sen to 28.5 sen on its first trading day.

L&G rose seven sen to 46.5 sen, MK Land 2.8 sen to 44 sen while MRCB added eight sen to RM1.49 as analysts viewed the property sector had more upside.

Ho Hup gained 40 sen to RM1.80 with 7.88 million shares, prompting a query from Bursa Securities.

Alliance Financial Group fell the most, down 18 sen to RM2.52. It was heavily traded with 15.26 million shared done. DiGi lost 10 sen to RM21.68 and Toyo Ink eight sen to RM2.30.