KL stocks surge but other Asian markets flounder

KL stocks surge but other Asian markets flounder

KUALA LUMPUR (AFP): Malaysian share prices shot up 16.1 percent Friday on heavy institutional buying as Asian stock markets ended mixed in cautious week-end trade.

Analysts said the buying on the Kuala Lumpur bourse appeared orchestrated to camouflage any impression of political instability after the expulsion of ousted deputy premier Anwar Ibrahim from the ruling party.

In neighboring Singapore, stock prices ended 0.9 percent lower as banking shares languished amid jitters over bank exposure to Malaysia.

In heavy trade, the Kuala Lumpur Stock Exchange index gained 50.37 points to close at 363.44 as local funds snapped up government-linked and blue-chip stocks to create a feel-good mood, dealers said.

Simon Flint, regional economist with IDEA in Singapore, said buying was orchestrated as a "show of strength that the government is doing the right thing" with the economy.

In Singapore, share prices closed 0.9 percent lower, as banking stocks languished on prevailing concerns over their Malaysian exposure despite a surge in Kuala Lumpur.

The benchmark Straits Times Index fell 7.66 points to 805.04. The broader All-Singapore index fell 1.89 points to 253.20 as trading on Malaysian shares traded over the counter was suspended.

In Hong Kong, share prices rose 2.3 percent after recouping earlier losses on bargain hunting, despite overnight falls on Wall Street, dealers said.

"It looks that small investors are in the market for oversold stocks," said Alex Tang, research head at Core-Pacific Yamaichi International.

The key Hang Seng index gained 169.88 points to close at 7,488.47.

In Tokyo, Japanese share prices closed 1.5 percent lower as concerns about corporate earnings and global financial markets dampened sentiment, brokers said.

The key Nikkei stock average of the Tokyo Stock Exchange fell 218.33 points to end the session at 14,042.91. The Topix index of all issues on the first section closed down 19.30 points at 1,094.47.

In Sydney, Australian share prices fell 0.4 percent, but bigger losses were averted by a rise in the local currency, analysts said.

The Australian Stock Exchange's benchmark All Ordinaries index dropped 9.3 points to 2,504.0.

In Bangkok, Thai share prices closed barely lower amid persistent concerns over a global economic slump and an ongoing sell-off by local institutional investors, analysts said.

The Stock Exchange of Thailand (SET) composite index lost 0.09 point to 207.31 points. The SET 50 index closed unchanged at 13.71 points.

In Manila, Philippine share prices closed 2.8 percent lower due to continuing regional turmoil complicated by this week's political shake-up in Malaysia, analysts said.

The Philippine Stock Exchange composite index fell 33.57 points to close at 1,159.38 points.

In Seoul, South Korean share prices ended a fractional 0.2 percent lower with early gains on futures-led buying offset by profit-taking and investor jitters, dealers said.

The KSE composite index ended 0.56 points down at 314.22, off a low of 314. 06 and a high of 318.73.

In Taipei, Taiwan share prices soared 3.4 percent Friday, buoyed by a government plan to bail out the bourse after it plunged to a two-year low, dealers said.

The Taiwan Stock Exchange weighted price index moved up 211.77 points to 6, 463.15, following a 3.4 percent plunge the previous session.

In Shanghai, Shanghai's B shares, nominally reserved for foreign investors, closed five percent higher on speculative interest in low-liners and energy stocks, analysts said.

The Shanghai Stock Exchange's B share index rose 1.52 points to close at 31.74 points while the A share index of locally- traded stocks finished 16.89 points, or 1.4 percent, higher at 1,136.44 points.

In Auckland, New Zealand stocks rose 0.8 percent as commodity stocks recovered some lost ground, dealers said.

The benchmark NZSE-40 index gained 13.40 points to 1789.07 on turnover of NZ$87 million (US$44 million).