The Star, 30 Jun 2011 - KL market at all-time high on positive news

The Star, 30 Jun 2011

PETALING JAYA: The FMB KLCI yeseterday surpassed its all-time high of 1,574.49 on Jan 17, as investor sentiment was buoyed by Wall Street's sharp rise on Tuesday, which was reflective of the growing optimism for a potential viable solution to Greece's debt crisis.

The CI closed 0.32% or 4.99 points up to 1,575.01 at 5pm yesterday with 1.04 billion shares traded. There were a total of 434 gainers and 333 losers while 319 stocks were unchanged.

A dealer said that while this was a positive sign, it remained to be seen if the momentum could be sustained over the next few days.

"The bargain hunting could be short-term as investor sentiment has been boosted by the performance of the US stock market and the positive news that preliminary work has begun to solve the Greek debt crisis.

"It would be interesting to see whether the market would continue to go up or experience a pull-back in the next few days. We feel it will be the latter as investors will likely want to cash in on their gains," he said.

"The Government's announcement to build affordable apartments less than RM300,000 in major cities to be launched this year also spurred some trading activity in selected lower-liner property stocks such as LBS Bina Group Bhd, KSL Holdings Bhd, Dijaya Corp Bhd and

YTL Land and Development Bhd.

Shares of MAA Holdings Bhd were the most actively traded yesterday rising 5.5 sen to RM7.55 with 47.3 million shares traded after its management assured shareholders a day earlier that the company's future plans were on track.

MAA had set a target of RM1bil in gross contributions for its takaful business under its five-year target.

The Dow Jones Industrial Average rose 145.13 points, or 1.21% to 12,188.69, making it the biggest one day gain since April 20.

According to reports, Greece's parliment is expected to vote soon on crucial austerity measures, while German banks have agreed in principle to rolling over about US$10bil (RM30bil) in Greek government debt following a French plan that would have banks reinvesting half of

the proceeds of maturing Greek debt into 30-year bons.

The news was reflected in the performance of regional markets which were mostly higher. Tokyo's Nikkei was up 1.54% to 9,797.26 and Hong Kong's Hang Seng Index was lower at 22,061.18.

Shanghai's A index was down 1.11% to 2,728.48 while Taiwan's Taiex Index was up 1.11% to 8,573.38.

Seoul's Kospi Index was up 1.53% to 2,094.42 while Singapore's Straits Times Index was up 0.97% to 3,080.28.