KLCI ends 7.06 points higher as plantation shares rise with CPO prices

KLCI ends 7.06 points higher as plantation shares rise with CPO prices
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KUALA LUMPUR (Dec 27): The FBM KLCI closed 7.06 points or 0.44% higher today at 1,610.61, after a surge in the final trading hour, partly helped by share price gains in plantation firms and as fund managers' window-dressing activities continued.

Plantation stocks including KLCI components Sime Darby Plantation Bhd and IOI Corp Bhd were among shares which rose sharply in the final trading hour, as crude palm oil (CPO) prices stayed above RM3,000 a tonne.

Fund managers said year-end window-dressing activities in the Malaysian share market may continue next week, as investor optimism improved on hopes a US-China trade deal would soon be signed.

“We think the (KLCI's) momentum will (be) sustained until next week or Chinese New Year. We are left with two working days before 2019 ends, so we also expect some window dressing activities next week,” Areca Capital Sdn Bhd CEO Danny Wong told theedgemarkets.com today.

Across Bursa Malaysia today, 2.24 billion shares were traded for RM1.47 billion. There were 512 gainers, versus 325 decliners.

Among plantation stocks, Sime Darby Plantation closed up seven sen or 1.3% at RM5.46, while IOI Corp added eight sen or 1.72% to RM4.72, as CPO prices stayed above RM3,000 a tonne today.

Yesterday, Bloomberg reported CPO futures closed above RM3,000 per tonne for the first time in almost three years, as concerns about output from the second-biggest producer Malaysia prompted investors to buy more at the end of 2019.

Globally, Reuters reported most Southeast Asian stock markets rose today, with Philippines shares leading the pack, as investor sentiment was boosted by hopes China and the US would sign a phase one trade deal early next year.

It was reported China's Commerce Ministry said on Thursday that Beijing was in close contact with the US about the initial agreement, after US President Donald Trump on Tuesday, talked up a signing ceremony for the recently-struck deal.