KUALA LUMPUR: Sentiment took a turn for the better yesterday. Shares on Bursa traded broadly higher, encouraged by overnight gains on Wall Street and the rally in key Asian markets.
With many stocks sold down to attractive valuations, investors were tempted to do some bargain-hunting. Market trading volume rose to 656 million shares, the highest level recorded since end-May.
Another drop in crude oil prices bolstered confidence and for the moment, allayed some fears of runaway inflation. Oil prices succumbed to profit taking on expectations of weakening global demand and higher stock levels. Crude oil futures traded on the New York Mercantile Exchange is currently hovering around US$127 (RM415.29) per barrel, well off its peak of US$147 per barrel recorded little over a week ago.
The retreat in oil prices gave investors something to cheer about, although concerns remain on corporate earnings growth going forward. The KL Composite Index opened on a firmer footing and gained in strength as the day progressed.
Blue chips racked up gains, leading the benchmark index sharply higher. Among the top gainers were Tanjong plc, Bursa Malaysia, Bumiputra Commerce, PPB, Genting, Sime Darby and Maybank. The KLCI added nearly 30 points to finish at 1,139.4 points.
DiGi and JT International were also among the big gainers for the day. Both companies announced generous cash returns for shareholders. DiGi declared a net interim dividend of 57 sen per share after chalking up another strong set of earnings in 2Q08. Meanwhile, cigarette manufacturer, JT International, proposed a capital repayment of 75 sen per share.
Market breadth was positive. At the close, the number of gaining stocks outpaced losing ones by a ratio of about four to one. AirAsia was the most actively traded counter. The stock gained on crude oil's fall. Other actives include MRCB, IOI Corp, Resorts World and Gamuda.
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