MARKET DEVELOPMENT
Crude Oil, Palm Oil Firm But Banks Weigh on KLCI
Crude Oil, Palm Oil Firm But Banks Weigh on KLCI
04/01/2017 (The Star) - Blue chips ended the first trading day of 2017 on a downbeat note weighe down by Maybank and Axiata but the firmer crude oil and crude palm oil (CPO) prices helped to shore the broader market.
The FBM KLCI fell 6.2 points or 0.38% to close at 1,635.53 on Tuesday. Turnover was 1.67 billion shares valued at RM1.07bil. There were 446 gainers, 361 losers and 311 counters unchanged.
CPO for third month delivery rose RM54 to RM3,163 per tonne and helped plantation stocks reverse from their earlier losses.
Buoyant crude oil prices as output cuts came into effect also supported oil and gas stocks, including Bumi Armada. US light crude rose 65 cents to US$54.37 and Brent added 74 cents to US$57.56.
The ringgit weakened against the US dollar and the Singapore unit but advanced against the pound sterling and the Euro.
It was at 4.4938 to the US$ from 4.4862 with the one-month non-deliverable forwards (NDF) at 4.50 to 4.51. It was at 3.1008 to the Singapore dollar from 3.0957.
The ringgit rose against the pound to 5.5040 from 5.5334 and was at 4.6892 to the Euro from 4.7060.
At Bursa, Hong Leong Bank fell 20 sen to RM13.30 and erased 0.74 of a point from the KLCI. Maybank fell 19 sen to RM8.01 and wiped out 3.3 points from the index while Ambank slumped four sen to RM4.27 and RHB Bank two sen lower at RM4.69. However, Public Bank rose four sen to RM19.76 and CIMB three sen higher at RM6.38.
AmInvestment Bank maintained its Neutral outlook on the banking sector. “No change to our stock picks. Our Buy calls remain CIMB Group (Fair Value: RM5.40) and RHB Bank (Fair Value: RM5.90),” it said.
As for plantations, KL Kepong was flat at RM24, PPB Group added eight sen to RM15.94 and IOI Corp three sen to RM4.43 while Sime Darby gained nine sen to RM8.19 and pushed the KLCI up 1.04 points.
FGV rallied 13 sen to RM1.68 with 14.77 million shares done. Investors took heart from its group president/chief executive officer Datuk Zakaria Arshad's assurance that the worst is over for the group as it positions itself to face industry challenges.
He said FGV was optimistic of emerging leaner and stronger this year riding on improved plantation sector performance and commodity prices.
Axiata fell 20 sen to RM4.52 and wiped out 3.05 points from the index, Telekom was flat at RM5.95, Macxis added two sen to RM6 and Digi three sen higher at RM4.86.
Among the oil and gas stocks, Petronas Gas added eight sen to RM21.38, Petronas Chemicals one sen higher at RM6.99 and Petronas Dagangan was flat at RM23.80.
Bumi Armada rose four sen to 64.5 sen with 27.3 million shares done while TH Heavy and Hibiscus gained 2.5 sen each to 16 sen and 43.5 sen while volume leader Sumatec was up 1.5 sen to nine sen.
KLCC was the top loser, down 41 sen to RM7.89 with 363,200 shares done while Naim Holdings lost 32 sen to RM1.58 and CMSB 16 sen lower at RM3.84.
US spot gold rose US$3.17 to US$1,150.67 per troy ounce.
The FBM KLCI fell 6.2 points or 0.38% to close at 1,635.53 on Tuesday. Turnover was 1.67 billion shares valued at RM1.07bil. There were 446 gainers, 361 losers and 311 counters unchanged.
CPO for third month delivery rose RM54 to RM3,163 per tonne and helped plantation stocks reverse from their earlier losses.
Buoyant crude oil prices as output cuts came into effect also supported oil and gas stocks, including Bumi Armada. US light crude rose 65 cents to US$54.37 and Brent added 74 cents to US$57.56.
The ringgit weakened against the US dollar and the Singapore unit but advanced against the pound sterling and the Euro.
It was at 4.4938 to the US$ from 4.4862 with the one-month non-deliverable forwards (NDF) at 4.50 to 4.51. It was at 3.1008 to the Singapore dollar from 3.0957.
The ringgit rose against the pound to 5.5040 from 5.5334 and was at 4.6892 to the Euro from 4.7060.
At Bursa, Hong Leong Bank fell 20 sen to RM13.30 and erased 0.74 of a point from the KLCI. Maybank fell 19 sen to RM8.01 and wiped out 3.3 points from the index while Ambank slumped four sen to RM4.27 and RHB Bank two sen lower at RM4.69. However, Public Bank rose four sen to RM19.76 and CIMB three sen higher at RM6.38.
AmInvestment Bank maintained its Neutral outlook on the banking sector. “No change to our stock picks. Our Buy calls remain CIMB Group (Fair Value: RM5.40) and RHB Bank (Fair Value: RM5.90),” it said.
As for plantations, KL Kepong was flat at RM24, PPB Group added eight sen to RM15.94 and IOI Corp three sen to RM4.43 while Sime Darby gained nine sen to RM8.19 and pushed the KLCI up 1.04 points.
FGV rallied 13 sen to RM1.68 with 14.77 million shares done. Investors took heart from its group president/chief executive officer Datuk Zakaria Arshad's assurance that the worst is over for the group as it positions itself to face industry challenges.
He said FGV was optimistic of emerging leaner and stronger this year riding on improved plantation sector performance and commodity prices.
Axiata fell 20 sen to RM4.52 and wiped out 3.05 points from the index, Telekom was flat at RM5.95, Macxis added two sen to RM6 and Digi three sen higher at RM4.86.
Among the oil and gas stocks, Petronas Gas added eight sen to RM21.38, Petronas Chemicals one sen higher at RM6.99 and Petronas Dagangan was flat at RM23.80.
Bumi Armada rose four sen to 64.5 sen with 27.3 million shares done while TH Heavy and Hibiscus gained 2.5 sen each to 16 sen and 43.5 sen while volume leader Sumatec was up 1.5 sen to nine sen.
KLCC was the top loser, down 41 sen to RM7.89 with 363,200 shares done while Naim Holdings lost 32 sen to RM1.58 and CMSB 16 sen lower at RM3.84.
US spot gold rose US$3.17 to US$1,150.67 per troy ounce.