Barefoot Investor: KLCI closes 1.85% higher on bargain hunting

The FBM KLCI started off September on a positive note as bargain hunting on select blue chips sent the 30-stock index up by 1.85% on Friday, Sept 2.

The FBM KLCI gained 26.82 points to close at 1,474.09, lifted by gains including at CIMB, DiGi, KLK and Telekom.

However, analysts said the FBM KLCI was playing catch up with the regional markets, having lost out on the rally over the last four trading days since Bursa Malaysia was closed since Monday afternoon.

Regional and European markets, however, slipped ahead of the US jobs data due to be released later Friday that could be a yardstick for the economic giant’s growth momentum.

Meanwhile, signs that Greece will miss its 2011 deficit target of 7.6 percent underscored concerns about the euro zone debt crisis, prompting investors to lighten their risky assets, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index fell 1.81% to 20,212.91, Japan’s Nikkei 225 lost 1.21% to 8,950.74, the Shanghai Composite Index was down 1.09% to 2,528.28, South Korea’s Kospi down 0.69% to 1,867.75, Taiwan’s Taiex shed 0.01% to 7,757.06 and Singapore’s Straits Times Index down 0.84% to 2,843.09.

UOB KayHian in a note Sept 2 said the best rebound plays were downtrodden liquid large caps that were delivering good earnings.

It said such companies on its Buy list were CIMB, Gamuda, GENTING BHD [] and UEM Land.

Other notable downtrodden companies include IOI Corp (Hold) and MMHC (Buy) although MMHC would be a ‘second liner’ mover given its latest disappointing results, it said.

Notable downtrodden mid-small caps include MRCB (Buy), it said.

“While the global equity markets are taking a respite, we remain cautious and expect equity markets to resume their downtrend, potentially until mid-4Q11.

“Hence, upside to the rebound plays could be capped,” it said.

On Bursa Malaysia, DiGi was the top gainer and added RM1.04 to RM31.26; Lafarge Malayan Cement added 41 sen to RM7, Harrisons 40 sen to RM3.80, Petronas Dagangan and KLK 36 sen each to RM18 and RM21.68, CIMB 33 sen to RM7.40, Parkson 31 sen to RM5.73, Tasek and Quality Concrete 30 sen each to RM7.56 and RM1.54, Telekom 21 sen to RM4.36 while Petronas Chemicals gained eight sen to RM6.30.

Axiata was the most actively traded counter with 45.99 million shares done. The stock fell two sen to RM4.70.

Other actives included E&O, CIMB, Petronas Chemicals, DVM, Telekom, Maybank and AirAsia.

Decliners meanwhile included Metrod, Masterskill, Hong Leong Industries, Faber, Petrol One, SapuraCrest and Southern Acids. (


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