Malaysian shares cut gains; Teh Hong Piow stocks among top gainers

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KUALA LUMPUR (Oct 8): The FBM KLCI rose 2.95 points or 0.17%, paring earlier gains on profit taking and as Asian markets swung into the red.

At 5pm, the KLCI closed at 1,692.20 points, supported by blue chips like UMW Holdings Bhd and Axiata Group Bhd which were also Bursa Malaysia's top gainers.

It is interesting to note that shares of companies linked to Tan Sri Dr Teh Hong Piow rose among Bursa Malaysia's top gainers. Second-largest gainer LPI Capital Bhd rose 24 sen or 1.7% to close at RM14.44 after reporting better third quarter financials.

Public Bank Bhd, which ended as the eighth-largest riser, rose 12 sen or 0.7% to RM18.38.

Earlier today, insurer LPI Capital said net profit rose 18% to RM75.84 million in the third quarter ended Sept 30, 2015 from RM64.2 million a year earlier. Revenue climbed to RM349.51 million from RM301.24 million in the previous year.

On the broader market, Areca Capital Sdn Bhd chief executive officer Danny Wong said investors were taking a break as they waited for new catalysts.

"Prior to this, they have been looking for undervalued stocks to invest in but with the rebound of certain stocks, the discount is less. So, investors are taking a break to look for new ideas," Wong said.

The new catalyst for the local market is seen in crude oil prices. "I think the producers will suggest a solution to cut production to keep crude oil prices at US$60 per barrel," Wong said.

The KLCI pared gains after rising to an intra-day high of 1,701.21 points. Yesterday, the index rose 26.74 points or 1.61%.

Today, although the KLCI ended on a positive note, Bursa Malaysia saw 520 decliners against 339 gainers.

The FBM Small Cap Index declined 116.08 points or 0.76% to 15,224.46. The index comprises companies within the top 98% portion of the Bursa Malaysia Main Market but excludes FBM 100 entities.

Bursa Malaysia saw 2.29 billion shares worth RM2.27 billion traded. The top decliner was Hang Seng-linked put warrant HSI-HG while the top-active stock was KNM Group Bhd.

Asian markets were mixed. South Korea's Kospi rose 0.68% but Japan's Nikkei 225 dropped 0.99%.

In China, Hong Kong's Hang Seng Index declined 0.71% while the Shanghai Composite added 3%. Mainland China shares resumed trading today after markets were closed between last Thursday (Oct 1) and yesterday.

China stocks surged on Thursday after a week-long break as they played catch-up with a global rally, while most regional markets retreated with Japanese equities hitting the skids on weak data, Reuters reported.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)