Malaysian shares rise, off new 42-month high

27 Jan, 2004

Banking stocks led Malaysian shares to a higher close on Monday, with the key index touching a new 42-month high at one stage as investors built on positions taken before the Lunar New Year holiday.
But news that bird flu had been found in neighbouring Indonesia and Thailand beat down shares of poultry firms, with KFC Holdings losing 3.5 percent to 4.46 ringgit ($1.17) and Ayamas Food Corp down two percent.
Malaysia remains free of the bird flu outbreak, the Veterinary Services Department said on Monday.
The 100-share Kuala Lumpur Composite Index put on 0.39 percent at 827.87 points, but off from 830.92 - a new 2004 peak and the highest level since July 24, 2000.
Overall volume was 513 million shares, down from last Tuesday's 554 million.
There was a gainer for every loser.
Banking counters led the market's rise, with the KLSE Financial Index gaining 1.31 percent to 6,899.84, also the best finish since July 2000.
Dealers said banking stocks probably rose due to investor bullishness about the economy and as fund managers adjust their portfolios to reflect expectations of new merger and acquisition activities.
Top lender Maybank soared two percent to 10.30 ringgit, Public Bank climbed 2.13 percent to 2.88 ringgit, RHB Capital was up 1.8 percent to 2.25 ringgit while AMMB rose 1.7 percent to 3.46 ringgit.
Wood products maker Malaysia Aica remained firmly on investors' radar screen, after gaining 343 percent in the past three weeks.
The stock has been climbing since the firm said it was buying Hyrax Sdn Bhd from investors such as Kamaludin Abdullah, son of Prime Minister Abdullah Ahmad Badawi, and fast-rising businessman Azman Yahya.
The stock closed up 28.29 percent to 3.90 ringgit.

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