Market to face pofit taking

Hallo, For today 27/6/06 Kuala Lumpur shares close firmer on institutional bargain-hunting - Share prices closed slightly higher, with cash-rich institutional investors entering the market to hunt for bargains following recent declines, dealers said.
The stocks gained further momentum in afternoon trade after the morning
session finished firmer on speculation that the price upswing could go much
further on technical factors, they said.
With the ringgit trading firmer later in the session, there could have
been some foreign inflows to the market as well, they added.
The Kuala Lumpur Composite Index (KLCI) closed up 3.25 points or 0.36 pct
at 907.76.
The second board index was up 0.41 points or 0.44 pct at 93.11.
Total market volume was 467.09 mln shares valued at 714.56 mln rgt.
Gainers outnumbered losers 419 to 243, with 292 counters unchanged and
360 stocks untraded.
At the close, the ringgit was quoted at 3.6855/6905 to the dollar,
against 3.6875/6900 at the morning close, and from 3.6890/6940 yesterday.
Dealers said they noticed some major insurance companies entering the
market for bargain-hunting, and from the ringgit's movements -- strengthening
in the afternoon session -- they suspect there had been some light buying
from the foreign funds as well.
However, they added that until the World Cup, which has provided a major
distraction to market speculators since the event's opening, is over, the
market is expected to continue trading sideways going forward.
"With the upside capped at 915 points and the downside (limited) at 880
points, we should see limited gains for the main index. That's why most
investors have chosen to wait on the sidelines for the time being," a dealer
with a local brokerage said.
She also said that the anticipated US interest rate hike at the Federal
Open Market Committee (FOMC)'s meeting on June 28 is already a "foregone
conclusion."

"If the Federal Reserve chooses to keep the rates at status quo, the
market is expected to react even more negatively, as it would read that as a
signal that the US economy is not holding up well," she added.
Among blue chips, Tenaga closed flat at 9.15 rgt on volume of 2.79 mln
shares, TM was down 0.05 rgt at 8.95 on 2.14 mln shares, while Maybank was
steady at 10.60 rgt on 2.15 mln shares.
British American Tobacco was up 0.75 rgt at 39.25, Genting up 0.20 rgt at
23.40, Tanjong Plc up 0.20 at 13.40 and Transmile up 0.20 rgt at 12.90.
Rashid Hussain Bhd edged higher by 0.05 rgt to 1.14 on 17.38 mln shares,
while RHB Capital gained 0.09 rgt to 2.79 on 6.6 mln shares.
Polytower was the most actively traded stock, rising 0.045 rgt to close
at 1.03 on 32.51 mln shares.
Iris Corp firmed 0.01 rgt to 1.16 on 25.24 mln shares.

For tomorrow, we may see some profit taking activity taking place, KLOFF may trade low to 890 point...

For CPO market, we are still negative about the market as for today closing lower to 1463...target price 1445...


Regard

Anthony Wong Pau Yean
012-3116806