KLCI up with Genting amid China share gain

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KUALA LUMPUR (Feb 20): The FBM KLCI rose 4.9 points or 0.3%  in line with China share gains and as investors bought KLCI-linked Genting Bhd shares.

At 5pm, the KLCI closed at 1,712.58 points. In China, the Shanghai Stock Exchange Composite rose 1.18%, while Hong Kong's Hang Seng climbed 0.47%.

Reuters reported China's blue-chip index posted its biggest daily gain in six months on Monday, after media reports said pension funds may begin flowing into the country's stock markets as early as this week.

At Bursa Malaysia, Genting Bhd shares rose 17 sen to RM9 to become Bursa Malaysia's eighth-largest gainer. Genting Bhd shares climbed after Nomura upgraded the stock to "buy" from "neutral", with a higher target price at RM10.20 versus RM9.40 previously.

"We upgrade Genting Bhd to Buy, as we believe the stock should continue its recent run backed by a corresponding rerating in its subsidiaries Genting Malaysia Bhd and Genting Plantations Bhd," Nomura said.

On the KLCI, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the index had tracked regional market gains.

“We see some buying interest (in Malaysian shares) from foreign funds. The better corporate earnings announced recently may translate to positive sentiment too,” Leong said.

Bursa Malaysia saw 2.49 billion shares, worth RM2.22 billion traded. Gainers outnumbered decliners at 466 versus 452, respectively.

U.S. markets are closed on Monday for the Presidents' Day holiday.