All-time high intraday trading
PETALING JAYA: The benchmark FTSE Bursa Malaysia KL Composite Index (FBM KLCI) surged to an intraday all-time high of 1,700.55 points on aggressive buying on the second day of the announcement of the dissolution of parliament.
The new high was set shortly after trading began at 9am yesterday. This is first time the index has ever hit a high after the announcement of the dissolution of parliament.
However, it declined after that and fluctuated around a tight range on several reasons – investors remaining cautious and not wanting to take positions at a time of uncertainty, the lack of external news flows as the Hong Kong and China markets were closed; and the overnight negative close of the Dow Jones Industrial Average Index.
At 5pm, the FBM KLCI closed for the second day in the row, up 3.06 points or 0.18% to 1,688.46.
Stocks that were picked up were Iskandar-related counters such as UEM Land Bhd, Tebrau Teguh Bhd and Daiman Development Bhd.
Other stocks that were in focus were also index-linked counters perceived to be defensive in nature, such as those in the telecommunications and banking sectors. Interest was also seen gathering pace for mid-to-small capitalised stocks.
A market observer noted that the market could see this trend until after the13th general election (GE13) results were announced.
Another said the bulls could charge the market to levels not seen in history and the index might rock- et to 2,000 points by year-end.
This, the strategy analyst said, was due to the confluence of positive factors and the amount of money that had been flushed into the local economy.
Stocks which hogged the gainers list yeterday were dividend-paying counters such as Panasonic Manufacturing Malaysia Bhd (up 44 sen to RM22.34), British American Tobacco (M) Bhd (rose 40 sen to RM65.30) and property counters such as Daiman (gained 34 sen to RM2.40).
Other actives were UEM Land Holdings Bhd, Tebrau Teguh Bhd and LBS Bina Group Bhd.
Elsewhere in region, the Singapore’s Straits Times Index declined 0.42% to 3,307.80 points, Indonesia’s Jakarta Composite Index dropped 1.18% to 4,922.61 but Japan’s Nikkei 225 bucked the trend, surging 2.2% to 12,634.54.
The ringgit was traded sharply higher against the US dollar yesterday, reflecting brisk demand for the local note amid a firmer cash market, dealers said.
At the closing, the local currency was quoted at 3.0790/0820 against the greenback compared with 3.0825/0845 at closing on Wednesday.