30-May-2008 : 29-05-2008 (THU) Market closes up on Wall Street gains

Stock prices on Bursa closed higher on May 29, helped by an overnight rebound on Wall Street and gains in regional markets, notably Japan.

Wall Street had chalked up modest gains on May 28 after generally better than expected April US durable goods orders data. Meanwhile, crude oil prices continued to gyrate, closing just above US$131 (RM425.75) per barrel, but well levels of US$135 earlier in the week.

On the domestic front, there was little reaction to Malaysia's GDP numbers for 1Q2008, which came in at 7.1%, from 7.3% in 4Q2007. The outlook going forward will be more challenging given the softening US economy and rising inflationary pressures.

Local investors still remained generally cautious, perhaps understandably so given the prevailing external and domestic uncertainties. The current earnings season hasn't yielded much surprises so far, except for the earlier strong showing by steel companies. Most results have been in line with expectations, except for the steel and plantation sectors.

The KLCI was in positive territory throughout the day, gaining as much as nine points but closing near its intra-day low instead. The index rose just 1.2 points to close at 1,261.8. Advancing stocks beat declining ones by a 7-to-5 margin at the close. Trading volume stayed thin with just 457 million shares changing hands.

The day's most actively traded stocks comprised mostly blue chips such as Maybank, TM, Gamuda, Genting, Resorts, YTL Power and IOI Corp. There was interest in Selangor water-related stocks on earlier news reports that the Selangor government may look at acquiring water-related companies that operate in the state.

Major gainers on May 29 include PPB, Panamy, KPS, Southern Steel, Digi and Sime Darby. Losers include Public Bank-foreign, MPI, Green Packet and Parkson.