MO,12/1/2018, KUALA LUMPUR: The local bourse opened in bullish territory on Friday, en route to snapping a three-day losing streak that has seen the market retrace much of the gains made over the recent rally. Regional markets have resumed their ascent after Wall Street’s record highs overnight, boosted by oil prices that have reached December 2014 levels.
At 9.25am, the FBM KLCI is 6.43 points higher at 1.823.12 points. Turnover was 471.93 million shares with a value of RM227.24mil. There were 383 advancers versus 120 decliners and 367 counters unchanged. CIMB saw upwards momentum on Friday following news that it was divesting a partial stake in its joint ventures with Principal FInancial Group for RM470.3mil.
“We are positive on this deal, with improvements to capital ratios and a possibly stronger-than-expected improvement in its core banking-related earnings mitigating any potential loss in earnings (~RM20m) from the dilution in these stakes,” said PublicInvest Research. The counter rose six sen to RM6.81. Hong Leng Bank rose 18 sen to RM17.64 while Petronas Chemicals gained six sen to RM8.13.
Also in the spotlight today, Kuchai Development surged 29 sen to RM2.05 on news that may be a major beneficiary from the listing of Great Eastern’s local insurance arm. Other advancers in early trade include Petron Malaysia , rising 16 sen to RM13.48 and MAHB, gaining 16 sen to RM915.
Among actively traded counters, oil and gas players Sapura Energy rose 2.5 sen to 89.5 sen and UMW Oil and Gas gained 1.5 sen to 42 sen. Sumatec rose half a sen to seven sen. Oil prices eased after hitting thier highest levels since December 2014 in the previous day. WTI crude dropped 18 cents to US$63.62 a barrel while Brent crude slipped once cent to US$69.25 a barrel.