17-May-2008: 16-05-2008 (FRI) KLCI regains 1,300-mark

Stock prices on Bursa rose on May 16, with the KLCI finally regaining the 1,300-point level, which had provided strong resistance earlier. However, investor caution remained evident as volume remained low and market breadth was only slightly positive for much of the day.

An overnight rally on Wall Street helped boost stock prices at the open. The KLCI rose to as high as 1,302.8 before closing at 1,300.7, up 6.5 points. Advancing stocks led declining ones by an 8-to-5 ratio at the close. However, volume remained relatively low, with just 567 million shares changing hands.

The rally on Wall Street was aided mostly by corporate developments at several major companies and a dip in crude oil prices, with fell to US$124 (RM401.20) per barrel from record high of US$126.98 earlier this week. However, US economic data was still largely mixed.

The Philadelphia Federal Index showed regional manufacturing activity continued to contract in May, but less than in April and more slowly than expectations. The Index came in at negative 15.6 for May, compared with negative 24.9 the previous month.

Meanwhile, the Empire State Index, a measure of manufacturing activity in the New York area came in at worse than expected negative 3.2 for May, down from a slight uptick in April. The weekly jobless claims were in line with expectations, rising by 6,000 to 371,000.

Also on the plus side, the Labour Department reported the number of laid-off workers applying for jobless benefits last week rose 6,000 to 371,000, which was mostly in line with expectations and indicated the labour market remains weak but in check.

On the domestic front, there were few developments, apart from Boustead Holdings' proposed privatisation of Boustead Properties, which saw the latter's share price rise 15.3%. Corporate results continue to trickle in, with no major surprises so far except for the earlier strong showing in steel companies.

The day's most actively traded stocks include Liqua, IE, MRCB, Resorts, Lion Corp and Time dotCom. Top gainers of the day include Boustead Properties, BAT, KNM, Bursa Malaysia, Lingui and RHB Capital. Losers include Public Bank, KESM, MAS and Axis