Malaysia Stocks: IGB, Kencana, KLCC, Sime, TM International

Malaysia’s benchmark Kuala Lumpur Composite Index (FBMKLCI) rose for the first time in five days, climbing 5.06, or 0.6 percent, to close at 843.45, the largest increase since Feb. 24. More than two stocks climbed for each one that fell on the 100-member gauge.

The measure fell 1.7 percent for the holiday-shortened week, its second decline. March index futures gained 0.8 percent to 842.00.

Plantation stocks: IOI Corp. (IOI) , Malaysia’s second-largest palm-oil producer, led gains by plantation stocks after palm oil futures climbed for the first time in three days. IOI added 1.6 percent to 3.80 ringgit. Kuala Lumpur Kepong Bhd. (KLK) rose 4 percent to 10.40 ringgit and Sime Darby Bhd. (SIME) gained 0.9 percent to 5.40 ringgit, the most since Feb. 11. Gains by the three stocks accounted for 40 percent of the Composite Index’s advance.

Palm oil futures in Malaysia rose as much as 3 percent to 1,978 ringgit ($534) a metric ton, its first gain in three days.

IGB Corp. (IGB) , Malaysia’s biggest owner of commercial properties, rose for the first time in five days, gaining 5 percent to 1.25 ringgit, the most since Feb. 24. Investors should buy property asset-owners instead of developers, said Citigroup Inc. in a report today. IGB and KLCC Property Holdings Bhd. (KLCC) are its “top picks,” it said. KLCC, owner of the Petrons Twin Towers, jumped 2.8 percent to 2.93 ringgit.

Kencana Petroleum Bhd. (KEPB MK) climbed 1.5 percent to 1 ringgit, the steepest increase since Feb. 19. The oil and gas services provider said it will spend $17 million to acquire stakes in two companies that own and operate offshore support vessels. The plan will help expand its scope of services and allow it to secure potential long-term contracts and generate recurring income, Kencana said in a statement.

OSK Property Holdings Bhd. (OSKP) jumped 6.9 percent to 31 sen. PJ Development Holdings Bhd. (PJD) bought a 6 percent stake in OSK Property, a stock exchange filing showed. PJ Development acquired 11.2 million OSK Property shares on March 5, according to the filing, which didn’t disclose the price paid for the shares. PJ Development lost 2.4 percent to 40 sen.

TM International Bhd. (TI MK) rose 3 percent to 2.44 ringgit, the most since Feb. 18 and the first advance in three days. The state-controlled mobile phone operator will set the price for shares on sale in a $1.4 billion rights offer on March 27. New shares will be on sale from April 15 through April 29, according to the sale terms sent to clients by the managing banks and obtained by Bloomberg News.

To contact the reporter on this story: Chan Tien Hin in Kuala Lumpur at thchan@bloomberg.net

To contact the editor responsible for this story: Linus Chua at lchua@bloomberg.net

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