5:54 pm - Malaysian shares close higher in thin trade led by palm oil stocks

Malaysian shares close higher in thin trade led by palm oil stocks - UPDATE (Updating with analyst comment, share prices) KUALA LUMPUR (Thomson Financial) - Malaysian shares closed higher Thursday led by palm oil stocks as the price of crude palm oil (CPO) reached another historical high, but volume was thin as most traders were still away on holiday. The Kuala Lumpur Composite Index (KLCI) was up 13.8 points or 1 percent at 1,437.82. The FTSE Bursa Malaysia 30-large cap index gained 95.67 points or 1 percent to 9,309.73 while the FTSE Bursa Malaysia second board index fell 13.53 points or 0.2 percent to 6,695.35. The plantation sector sub-index rose 165.07 or 2.1 percent to 7,977.51. Advancers led gainers 478 to 345, with 339 stocks unchanged and 192 counters untraded. Trading volume was 839.78 million shares, valued at 1.45 billion ringgit. The benchmark index was lifted by gains in major palm oil stocks like Sime Darby and IOI Corp after CPO futures traded to another all-time high, said Stephen Soo, analyst at TA Securities. On the Malaysian derivatives exchange, the benchmark CPO contract for March delivery was last at 3,094 ringgit per metric ton, up 14 ringgit. It earlier traded to an all-time high of 3,150 ringgit on concern severe flooding in major palm oil-producing states will cut output. The KLCI could breach its previous intraday high of 1,449.7 points in the final trading days of the year on last minute window-dressing, said Soo. "I think we can expect a new year rally next month when traders return from their year-end holidays," said Soo. Sime Darby, the world's largest listed palm oil company by planted area, jumped 30 sen or 2.6 percent to 11.70 ringgit. IOI Corp, the second largest palm oil stock on the local bourse by market value, rose 20 sen or 2.7 percent to 7.70 ringgit and Kuala Lumpur Kepong, which owns oil palm estates in Malaysia and Indonesia, gained 30 sen or 1.8 percent to 17.00 ringgit. High CPO prices will translate into strong earnings for palm oil producers. "CPO prices are at record levels owing to anticipated decline in global edible oil stock next year. We believe the upcycle in CPO prices will be extended for another year at least," said Alvin Tai, analyst at OSK Investment. Among other index heavyweights, Maybank, Malaysia's largest bank, added 10 sen or 0.9 percent to 11.90 ringgit, state-held Telekom Malaysia was unchanged at 11.30 ringgit while national power supplier fell 5 sen or 0.5 percent to 9.55 ringgit. DiGi.com, the local unit of Norway's Telenor, jumped 60 sen or 2.5 percent to 24.60 ringgit. At the close, the Malaysian ringgit was quoted at 3.3350/3400 against the US dollar. Three-month interbank rates were at 3.55/58 percent and the overnight rates were quoted at 3.47/50 percent.