KUALA LUMPUR: The KLCI closed at its highest since October last year, supported by fund buying of key heavyweights and smaller capitalised counters, including plantations, pipe makers and steel manufacturers.
Volume had again picked up, as traders were in the market to pick up second liners and third liners.
However, despite the 10 points gain which enabled the KLCI to close at 978.64, in percentage terms, the KLCI trailed behind the key regional markets.
Stocks to watch on April 24 are again plantations including KL Kepong, IOI Corp and the smaller players, oil and gas counters and related pipe manufacturers.
Steel stocks could also generate interest, as seen the rising trend in Kinsteel and recently Southern Steel.
The Lion Group had also seen active trade, especially Lion Industries, Lion Corp and Lion Diversified, in the absence of fresh corporate news.
Other counters are Yeo Hiap Seng (YHS), Wah Seong, BAT and YTL e-Solutions.
Plantation stocks would continue to generate trading interest due to the rally on crude palm oil prices, with the third-month contracts rising RM105 to RM2,580, the highest since September last year.
There was also a record number of contracts due to short covering. Hence, there could be some profit taking after the surge.
The possibility that Petronas may bid for a stake in a natural gas area in the Natuna Sea in Indonesia could generate interest in the companies in the oil and gas sector.
Wah Seong, which makes pipes for the O&G sector, recorded one of the biggest gains in many months. It had been a laggard in the sector, despite upgrades by several research houses.
AmResearch had a Buy on Wah Seong at RM1.53 with fair value of RM2.05 recently. Its order book was RM1.4 billion as at Dec 31, 2008.
BAT 1Q net profit fell slightly to RM205.94 million from RM211.4 million a year ago due to lower sales volume. It did not declare any dividends.
YTL Corp’s wireless Internet provider YTL e-Solutions plans to invest RM2.5 billion to rollout the WiMAX services to 14 million customers. Of the RM2.5 billion, YTL e-Solutions plans to invest RM1 billion in the first year.
YHS posted net loss of RM8.73 million in the first quarter ended March 31, from net profit of RM1.22 million a year ago. The losses were mainly due to write down of an investment in quoted securities by RM7.81million, lower sales and more competitive pricing.
Bursa Malaysia Securities has warned Watta Holding that it faced immediate suspension if it failed to submit its financial statements for the year ended Sept 30, 2008 (FY08) by April 30.
HELP International Corporation hopes to conclude talks on the proposed acquisition of three education institutions, local and overseas, in six months. Local and foreign funds seek to provide funding in return for equity stakes. HELP has RM74 million cash.