Bloomberg News

Malaysia Stocks: Eastern & Oriental, KNM, LPI, Tenaga, WCT

January 09, 2009

Malaysia’s Kuala Lumpur Composite Index (FBMKLCI) rose 8.55, or 0.9 percent, to close at 919.07, rebounding from yesterday’s 1.8 percent fall. Almost five stocks climbed for each one that fell on the 100-member gauge.

The benchmark index had its second weekly advance after gaining 2.8 percent this week. January index futures climbed 1 percent to 927.50.

Oil and gas related stocks: KNM Group Bhd. (KNMG) rose 2 sen, or 4.1 percent, to 50.5 sen, the most active stock in Malaysia with 34.5 million shares traded. Scomi Group Bhd. (SGB) climbed 1.5 sen, or 4 percent, to 39 sen, its first gain in four days. SapuraCrest Petroleum Bhd. (SCRES MK) climbed 3 sen, or 3.5 percent, to 88 sen, after crude oil rose for the first time in four days, boosting optimism exploration-related contracts will increase.

Eastern & Oriental Bhd. (EAST) jumped 13 sen, or 22 percent, to 69 sen, the most since May 6, 2005. Goldman Sachs Group Inc. bought 10.9 million shares in the property developer from the open market, boosting its stake to 8 percent, a stock exchange filing showed. Goldman Sachs bought the shares on Dec. 31, the filing showed.

LPI Capital Bhd. (LPI) advanced 20 sen, or 2 percent, to 10 ringgit, on course for its highest level since Oct. 9. The insurer offers the “greatest value and long-term growth prospects” among its peers, OSK Research Sdn. said in a report today. LPI said in a statement yesterday that profit in the fourth quarter ended Dec. 31 rose 30 percent to 32.7 million ringgit from a year earlier.

Tenaga Nasional Bhd. (TNB) added 25 sen, or 3.9 percent, to 6.60 ringgit, accounting for almost a quarter of the benchmark Composite Index’s gain. The power utility is among four “bombed-out” stocks investors should buy, Macquarie Group Ltd. said in a report. Macquarie raised its weighting recommendation on Malaysia to “neutral” from “underweight.”

WCT Bhd. (WCT) rose 4 sen, or 3.5 percent to 1.17 ringgit, snapping a three-day, 38 percent slump. The stock’s 14-day relative strength index, which shows how rapidly prices have advanced or dropped, fell to 33 yesterday, near the 30 level that some investors use as a trigger to buy.

To contact the reporter on this story: Chan Tien Hin in Kuala Lumpur at thchan@bloomberg.net

To contact the editor responsible for this story: Linus Chua at lchua@bloomberg.net


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