Written by Joy Lee
Wednesday, 03 March 2010 08:57
KUALA LUMPUR: Blue chip stocks on Bursa Malaysia may extend its gains Wednesday, March 3 after the local stockmarket benchmark advanced for two consecutive days.
This follows a marginal rise across US stock indices in overnight trade as investors digested updates on the world's largest economy's automotive sales, and indications that Greece's debt crisis is under control.
In Malaysia, The FBM KLCI added 4.67 points to 1,288.07 on Tuesday. It broke the resistance level of 1,288.5 when it hit an intraday high of 1,292.81.
Stocks to watch on Wednesday include HONG LEONG BANK BHD [], CIMB Group Holdings Bhd, BOUSTEAD HOLDINGS BHD [], GUINNESS ANCHOR BHD [] and ALLIANCE FINANCIAL GROUP BHD [].
Hong Leong’s share price rose as much as 29 sen or 3.45% to an all-time high of RM8.69 on Tuesday after announcing that it was given the green light to start consumer finance operations in western and central China. Analysts were generally positive on this development as it is a catalyst for rapid loan growth.
CIMB Group's wholly-owned subsidiary, CIMB Investment Bank Bhd, received approval from the Vietnam Securities Commission for its subscription of an equity interest in Vinashin Shipbuilding Finance Company Securities LLC (VFC Securities). CIMB could subscribe up to 40% equity in VFC Securities.
Boustead, meanwhile, will dispose its 80% stake in BH Insurance (M) Bhd to AXA Affin General Insurance Bhd for RM362.58 million. It will also acquire a land along Jalan Eaton, Kuala Lumpur for RM15.79 million.
Guinness is aiming to achieve 60% share of the country's beer and stout market this year, higher than its 57% share last year.
Shim Kon Teck, the group chief operating officer of Alliance Bank Malaysia Bhd has resigned from the financial services group.
Banks may also stir some interest following Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz’s comment on Monday that the central bank will raise interest rates in a measured, gradual manner in order to support the economy.
A Reuters poll last week showed nine of 12 economists expected a 25 basis point rate rise by May, with four saying it would come Thursday.
In the US, the Dow Jones Industrial Average closed 0.02% higher at to 10,405.98 in overnight trade, Nasdaq added 0.32% to 2,280.79 while S&P 500 was up 0.23% to 1,118.31.
