The KLSE market opened stronger this morning in light of the Budget 2009 announcement later this afternoon.
Will it be a good budget? Will the Government address the crucial issue of inflation and economy? Will the market be this robust on Monday morning? We’ll just have to wait and see…
KUALA LUMPUR: Blue chips were firmer in early trade on Friday, as investors’ sentiment perked up ahead of the Budget announcement and also the stronger overnight close on Wall Street.
At 9.30am, the KLCI was up 8.56 points to 1,079.02. Turnover was 57.87 million shares valued at RM80.4mil. There were 124 gainers, 50 losers and 97 counters unchanged.
Asian markets were firmer in early trade also, with Singapore’s Straits Times Index up 32.26 points or 1.2% to 2,723.26, Japan’s Nikkei 225 gained 1.74% to 12,990.59 and Shanghai’s A Share Index rising 0.86% to 2,488.69.
Oil fell to US$116.22 due to the larger-than-expected build-up in US natural gas inventories, despite fears that Hurricane Gustav will disrupt Gulf production.
OSK Investment Research said the immediate technical outlook for the KLCI remained firmly bearish at the moment. As for Thursday, the local bourse had four successive slow sessions in a row.
It said US markets posted solid gains as the second quarter GDP was revised upwards and this figure was above market expectation. The weekly jobless claims were also down from the previous week.
“Hopefully, the strong US market’s performance could cause volatility in the market on Budget day today,” it said. It added the 1,050-level was a critical support for the market.
BCHB rose 30 sen to RM8.20, Genting and Bursa advanced 15 sen to RM5.45 and RM6.85 while Southern Steel added 11 sen to RM2.79. Tanjong and KL Kepong gained 10 sen each to RM12.90 and RM11.60 respectively.
Public Bank foreign rose 10 sen to RM10 in active trade, while plantation heavyweight Sime gained five sen to RM6.70.
Dutch Lady eased 20 sen to RM11.70 with only 2,000 shares done while Kulim lost 10 sen to RM7.50 and BToto eased six sen to RM4.54.