High Oil Price, War On Middle East

Kuala Lumpur shares close higher on technical rebound, manufacturing data
UPDATE 18/07/2006 - Share prices closed higher on a technical
rebound from a two-day fall, supported by strong manufacturing sales data for
May, dealers said.
Trading sentiment, however, was unstable and the day's gains were pared
in late trade by some profit-taking, which dealers said may set the tone for
tomorrow's trade.
The Kuala Lumpur Composite Index (KLCI) closed up 5.98 points or 0.66 pct
at 908.68, while the Second Board Index gained 0.91 points to 90.92.
Trading volume was 826.41 mln shares valued at 929.56 mln rgt.
Gainers outnumbered losers 571 to 159, with 260 counters unchanged and
329 stocks untraded.
At the close, the ringgit was quoted at 3.6825/6875 to the dollar,
compared with yesterday's closing quote of 3.6875/6925.
The Statistics Department announced at midday that manufacturing sector
sales in May rose 11.1 pct year-on-year to 40.7 bln rgt, and were up 1.5 pct
from the 40.1 bln rgt registered in April.
RAM Consultancy Services Sdn Bhd's chief economist and managing director
Yeah Kim Leng said the figures showing improved growth in May helped boost
investor confidence in the overall health of the economy and in market
prospects.
The KLCI, which had been down the past two trading days and bounced back
on technical factors earlier in the day, was buoyed by reaction to the
manufacturing sales data, ending the morning session up 7.77 points or 0.86
pct at 910.47, before profit-taking slashed the gains toward the close.
"Profit-taking already started to take a toll on the market in the latter
part of trade. This could suggest that market sentiment remains volatile,
and market direction could turn either way in the near term," a local
brokerage dealer said.
He said the moderate trading volume also reflects "cautious optimism" on
the part of investors.
The dealer said the market can be expected to yield to profit-taking
pressure tomorrow in rangebound trade between 906 and 910 points.
Dealers said the market is also expected to continue to track
developments on Wall Street and regional markets, where concerns over the
conflict in the Middle East continue to haunt investors.
Among blue chips, Telekom Malaysia closed up 0.10 rgt at 9.05, Genting
advanced 0.20 rgt to 23.20 while BAT Malaysia was flat at 40.25.
Other notable gainers include Shell Refining Company, which rose 0.30 rgt
to 10.30, Dutch Lady Milk Industries, up 0.20 rgt at 8.90, and Transmile
Group, up 0.20 rgt at 12.70.
Construction stocks were sharply higher on speculative interest as
investors awaited the unveiling of projects under the Ninth Malaysia Plan.
MTD Infraperdana was up 0.04 rgt at 1.15, Tebrau advanced 0.05 rgt to 0.
63, and UEM Builders gained 0.04 rgt to 1.23.
Astro All Asia Networks Plc firmed 0.06 rgt to 4.60 after the company
said the launch slot for the MEASAT-3 satellite (M3) has been confirmed
Wellcall Holdings Bhd jumped 0.28 rgt or 28 pct to 1.28 in active trade
after the company made its debut on the second board.
At the close, three-month interbank rates were quoted at 3.90/92 pct and
the overnight rate was quoted at 3.45/50.

For tomorrow, market rebound...long KLOFF...near term target 905 points...

For CPO Market...market too high to long...good chance to short...near term target 1490...

Regard

Anthony Wong