KLCI Highest Since September

The Wall Street saw lower close today but KLCI defied that by closing highest since September 2008 due to buying on big cap stocks and plantation stocks. However, smaller caps were closed lower due to traders locking in their gains. Note that penny stocks were the most active ones today.

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KLCI : 1,042.63 up 19.14 points

Turnover: 1.87bil shares, valued RM1.86bil

Up: 358, Down: 307, Unchanged: 204

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Gainers were KL Kepong, PPB, United Plantations, Sime Darby, Tenaga, Boustead Heavy Ind., Nestle (thinly traded) and Asiatic, all of which are big caps.

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Active trading seen on Tebrau Teguh and MRCB which are related to the Iskandar Malaysia development. JAKS, KPS and Puncak Niaga which are water-related saw active trade in view of of the meeting between the Selangor state government and federal government to work out the restructuring plan.

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If the next resistance for the KLCI of 1,050 is reached, we would be looking at end-of-year target of 1,120 as some brokers have been mentioning. I am looking to dump Scomi at RM0.75, Gamuda at RM2.65, KNM at RM0.85, MMCCORP at RM1.95. Hoping these could come before end of May.

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