KUALA LUMPUR: Plantations rose in the morning session on Thursday, Jan 7, supported by gains in PPB, IOI Corp and KL Kepong after a positive report from CIMB Research while key regional markets slipped into the red.

At 12.30pm, the FBM KLCI rose 2.35 points to 1,295.52 after the 30-stock benchmark index was unable to break through the psychological important 1,300 level. Turnover was 874.77 million shares valued at RM968 million. There were 310 gainers, 319 losers and 265 stocks unchanged.

Japan's Nikkei 225 fell 0.16% to 10,714.76, Hong Kong's Hang Seng Index slipped 0.21% to 22,370.11 while Shanghai's Composite Index 0.2% lower at 3,247.8 and Singapore's Straits Times Index declined 0.41% to 2,918.59.

Light crude oil fell 45 cents to US$82.73,  US spot gold fell US$4.88 to US$1,133.53 while crude palm oil futures lost RM38 to RM2,678.

Among the 30-stocks of the FBM KLCI, CIMB rose 12 sen to RM13.36, pushing up the index by 1.38 points, Puboic Bank added four sen to RM11.42, AMMB three sen to RM5.13.

PPB was the top gainer, rising 40 sen to RM16.70, KL Kepong 34 sen to RM17.18, Batu Kawan 32 sen to RM10.90 and United Plantations 16 sen to RM13.80 while IOI Corp added six sen to RM5.60.

CIMB Equities Research maintained its Overweight stance on the regional plantation sector as conditions are ripe for an earnings rebound in 2010, coming not only from higher selling prices and production but also from lower operating costs.

"Other potential re-rating catalysts for the sector are potential M&As and upturns in regional equity markets," it said.

Media Prima-WB, which was listed on Thursday, jumped 30 sen to 36 sen but with only 9,000 units done. Petra Perdana added 22 sen to RM1.83 in active trade despite the boardroom tussle.

Among glove makers, Adventa added 17 sen to RM3.65, Top Glove 14 sen to RM10.38 and Supermax nine sen to RM5.44.

AFG fell five sen to RM2.50 despite the banking group's statement on Tuesday that its group CEO Datuk Bridget Lai was not resigning.

Ho Hup fell sharply, down 56 sen to RM1.43 with 2.63 million shares done on concerns about the fundamentals of the company when the share price was at RM2.

Tenaga lost 17 sen to RM8.18 on concerns the power giant might not get its tariff review while HLFG lost 17 sen to RM7.45 and Shell 12 sen to RM10.60.