KUALA LUMPUR: The local bourse continued its rally on July 20, in tandem with other key Asian markets, as gains in blue chips and rising commodity prices pushed the FBM KLCI to a fresh year-high.
The benchmark index opened at 1,120.9 points and was in positive territory throughout the day. It hit an intra-day high of 1,140 points at 2.35pm, before easing off slightly to close at 1,139.25 points, a gain of 18.35 points or 1.64% over last Friday’s close of 1,120.9 points.
The closing level was the highest since Aug 4, 2008, when the benchmark index closed at 1,148.68 points. July 20’s turnover was 1.01 billion shares valued at RM1.59 billion. There were 485 gainers and 175 losers, while 213 counters were unchanged.
Three-month crude palm oil futures settled RM37 higher at RM2,160 a tonne, while light crude oil traded on the New York Mercantile Exchange gained US$1.21 to US$64.77 per barrel as at press time.
Actively traded stocks included KNM Group Bhd, Damansara Realty Bhd, Axiata Group Bhd, Kinsteel Bhd and Time Engineering Bhd.
Top gainers were mostly blue chips, namely PPB Group Bhd (up 30 sen to RM12.60), IJM Corp Bhd (30 sen to RM6.30), Parkson Holdings Bhd (30 sen to RM5.35), Genting Bhd (25 sen to RM6) and Tenaga Nasional Bhd (25 sen to RM8.45).
Nestle (M) Bhd and Astro All Asia Networks plc were among the top losers, shedding 25 sen and 20 sen to RM31.75 and RM3.42, respectively.
Benny Chew, managing director and regional head of equity research at AmResearch, said the recent rally might “pull back” in the immediate term, but the FBM KLCI was on track to achieve its targeted 1,190 points by the first quarter of next year, underpinned by the country’s pump-priming activities.
“In our recent market strategy report, we said that our emphasis next year is infrastructure spending. The construction sector will benefit from projects soon to be rolled out.
“We also see corporate earnings turning around to post a 17% growth next year from a contraction of 8% this year.
That should drive the market up, and we think we will reach 1,190 by the first quarter next year,” he told The Edge Financial Daily.
Public Bank Bhd, which announced a 3% increase in second quarter (2Q) net profit to RM610.74 million, gained 20 sen to RM10.30.
Bursa Malaysia Bhd rose five sen to RM7.30 after reporting a 22% jump in 2Q net profit to RM35.02 million.
Key Asian markets advanced following Wall Street’s buoyant performance last week. Hong Kong’s Hang Seng Index was the top gainer in the region, adding 696.71 points or 3.7% to close at 19,502.37 points.
Shanghai Composite Index gained 77.18 points or 2.42% to 3,266.92 points, while Taiwan’s Taiex was up 87.87 points or 1.28% to 6,938.86.
South Korea’s Kospi rose 38.41 points or 2.67% to 1,478.51 points, while Singapore’s Straits Times Index gained 25.19 points or 1.04% to 2,456.15. Japan’s markets were closed for a national holiday.
The ringgit was stronger against major currencies except the pound, where it was 0.34% weaker at 5.8557. At 7.20pm, it was 0.92% stronger versus the US dollar at 3.5397, 1.23% higher at 3.7462 against the yen, and 0.16% stronger against the Singapore dollar at 2.4586.