Oil and gas stocks gain in Malaysia

Share prices closed the morning mixed after a volatile session but gains in selected oil and gas stocks and blue-chips kept the benchmark KLCI in positive territory.

The Kuala Lumpur Composite Index gained 6.55 point or 0.48 pct to 1,360.93, off the session's high of 1,364.82.

The FTSE Bursa Malaysia 30-large cap index was up 62.70 points or 0.73 pct at 8,650.59, while the second board index fell 0.02 point or 0.02 pct to 110.63.

Losers led gainers 396 to 378, with 270 stocks unchanged and 300 counters untraded.

Volume traded reached 505.89 mln shares, valued at 796.643 mln rgt.

'Some of the stocks are rebounding today due to last week's 2.67 pct loss (for the whole week),' OSK Securities head of research Kenny Yee said, adding that the market's low trading volume is worrying.

He said this suggests that the market has yet to emerge from its consolidation phase.

The local bourse closed down every day of the week last week, with analysts attributing the loss to profit-taking after the market's recent impressive run.

The KLCI's advance was mainly led by blue-chips, he said, noting that now is a good time to pick up bargains especially oil and gas and plantation stocks.

Aseambankers Research in its third quarter market strategy report said it continues to have an 'overweight' call on the Malaysian oil and gas and property sectors.

'At the policy level, the government could announce further incentives which would be particularly positive to the property sector,' Aseambankers head of research Vincent Khoo said.

SBB Securities said it does not foresee any reasons for the market's rally to be scuttled abruptly going forward unless there are serious structural flaws in the implementation of projects outlined in the Ninth Malaysia Plan or a global financial crisis occurs.

Index heavyweights were mostly mixed, with national utility Tenaga down 0.10 rgt or 0.88 pct at 11.30, Telekom Malaysia flat at 10.30 rgt and Maybank, Malaysia's largest bank, adding 0.20 rgt or 1.67 pct to 12.20.

Malaysian Oxygen (MOX) led the gainers' list, surging 1.80 rgt or 12 pct to 16.80, after Linde (other-otc: LNAGF.PK - news - people ) increased its offer for MOX shares to 17.00 rgt apiece from 15.00 previously.

Shares of insurer Malaysian National Reinsurance (MNRB) gained 0.20 rgt or 3.74 pct to 5.55 after Linde's move. MNRB owns a 3.24 pct stake in MOX.

Among oil and gas firms, KNM jumped 0.30 rgt or 2.19 pct to 14.00, while UMW added 0.90 rgt or 7.14 pct to 13.50.

SP Setia, one of the largest developers in the country, added 0.10 rgt or 1.16 pct to 8.75.

Malaysian Resources Corp was up 0.06 rgt or 2.21 pct at 2.77 on hopes that the firm stands a good chance to win a monorail project in the northern state of Penang due to its partnership with Penang Port Sdn Bhd, a company that owns a substantial portion of the land on which the monorail would be constructed.

Construction group IJM Corp gained 0.05 rgt or 0.60 pct to 8.40 after saying it will pay 33 mln rgt to acquire a 25 pct stake in financially troubled Kumpulan Europlus, which owns 20 pct of a consortium that will build the West Coast Highway project.

Insurer MAA Holdings gained 0.04 rgt or 1.89 pct to 2.16 after the company said it aims to complete talks on the disposal of its 49 pct stake in MAA Assurance Bhd.

The Edge Weekly, a local business paper, reported over the weekend that American International Assurance is believed to be one of the strategic partners interested in taking up a stake in MAA Assurance.

Jaya Tisa, a timber firm linked to Rimbunan Hijau, rose 0.15 rgt or 2.83 pct to 5.45 on speculation that Rimbunan, controlled by billionaire Tiong Hiew King, may seek to merge its palm oil and timber operations around the world for a listing in Hong Kong.

Palm (nasdaq: PALM - news - people ) oil stock were mixed, with IOI Corp, the country's largest palm oil producer, flat at 5.20 rgt, Kuala Lumpur Kepong, a non-government controlled palm oil major, gained 0.10 rgt or 0.78 pct to 13.00, and Golden Hope was down 0.10 rgt or 1.18 pct at 8.40 rgt .

At the close of the morning session, the ringgit was quoted at 3.4430/3.4460 against the dollar.

source:www.forbes.com