KL shares up 2pc on buying interest (06.04.2009)

MALAYSIAN shares closed higher today on follow-through buying in heavyweights, particularly plantation and finance-related counters, following the gains on global marts led by an uptrend on Wall Street, dealers said.

The Kuala Lumpur Composite Index rose 16.76, or 1.9 per cent, to close at 923.77, the highest level since January 7. Just six stocks fell on the 100-member gauge. The measure has gained for a fifth day, the longest winning streak since March 23.

In the market, 876 million shares changed hands, double the three-month daily average of 420 million shares. April index futures advanced 1.7 per cent to 925.50.

Advancers led decliners by 437 to 147 while 176 counters were unchanged, 486 untraded and 34 others suspended.

Dealers said trading on the local market was also boosted by favourable investor sentiment following a smooth transition in the premiership to the sixth Prime Minister, Datuk Seri Najib Tun Razak last Friday.

A dealer said the KLCI is expected to touch the 953 level soon, depending on how fast the global economic recovers.

He said the market is also expected to remain on a positive note for the week as most investors are awaiting the outcome of the new Cabinet line-up.

The KLCI is expected to trade between the 900 and 920 level tomorrow.

Advance Information Marketing Bhd dropped 11 per cent to 8 sen, the largest slide since March 4. The software services provider said Petronas Dagangan Bhd has ended a contract with one of its customers, Electronic Commerce Technology Sdn Bhd.

Advance Information provides IT software and maintenance services including call center services to Electronic Commerce, it said in a statement. The move will hurt its earnings this year, Advance Information said.

AirAsia Bhd climbed 6.5 per cent to RM1.06, the most since February 6. Southeast Asia’s biggest discount carrier plans to unwind some of its interest-rate swaps this year to capitalise on lower rates, the Business Times reported today, citing chief executive officer Datuk Seri Tony Fernandes. Air Asia had entered into these interest-rate swaps to hedge against fluctuations in rates on existing and future aircraft financing for deliveries between 2005 and 2009, the newspaper said. Fernandes didn’t immediately respond to an e-mail sent by Bloomberg.

Bumiputra-Commerce Holdings Bhd, Malaysia’s second-largest bank, advanced 2 per cent to RM7.75, the highest level since October 7. Its target price was raised to RM8 from RM7.60 by JPMorgan Chase & Co.

IGB Corp, Malaysia’s biggest owner of commercial properties, jumped 8 per cent to RM1.49, the steepest gain since September 27, 2007, after AmResearch Sdn Bhd said the company may set up a real estate investment trust to “unlock value” of its assets.

WCT Bhd, Malaysia’s fourth-biggest builder, surged 7.9 per cent to RM1.36, the highest close since January 5. The company is close to securing two domestic construction contracts valued at as much as RM500 million (US$141 million), AmResearch Sdn Bhd said in a report after a meeting with the company’s management. WCT executive director Loh Siew Choh didn’t immediately respond to an e-mail by Bloomberg. -- Bernama, Bloomberg

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