Interst ease, share go up

Kuala Lumpur shares close higher as rate worries ease; financials lead UPDATE 20/07/2006
- Share prices closed higher, tracking strong
gains across the region after US Federal Reserve Chairman Ben Bernanke's
remarks eased concerns about interest rates, dealers said.
Bernanke said in his congressional testimony last night that the US
economy is slowing to a more sustainable pace and that inflation remains
contained.
Financial stocks led the gains in the local market after the Fed chief's
comments suggested that the US rate-hike cycle may be nearing an end.
The Kuala Lumpur Composite Index (KLCI) closed up 4.64 points or 0.51 pct
at 916.62 , off a high of 920.72 , while the Second Board Index shed 0.75
points to 89.97.
A total of 800.03 mln shares were traded, valued at 909.44 mln rgt.
Losers outnumbered gainers 342 to 334 , with 331 counters unchanged and
309 stocks untraded.
The finance sector index closed up 73.35 points or 1.01 pct at 7,348.19.
The ringgit was at 3.6950/6970 to the dollar.
A local brokerage dealer said that despite the latest positive news from
the US, the local market's direction remains unclear.
"Sentiment is still fragile with profit-taking continuing to be a
problem. Investors continue to be cautious. I guess there need to see a
strong upward trend before changing their stance," he said.
He said he expects profit-taking tomorrow.
TA Securities said the tame Malaysian consumer price index for June,
which rose 3.9 pct year-on-year, should lend some support to the market.
Among blue chips, Tenaga Nasional closed flat at 9.10, Telekom Malaysia
lost 0.05 rgt to 9.00 and BAT Malaysia advanced 0.25 rgt to 40.25.
In the financial sector, Malayan Banking was up 0.10 rgt at 10.50,
Bumiputera-Commerce Holdings added 0.05 rgt to 5.80 and Public Bank gained 0.
10 rgt to 6.45.
Bina Puri Holdings Bhd firmed 0.01 rgt to 0.65 after the company said its
unit has won a contract worth 46 mln rgt.
Digi.com Bhd gained 0.40 rgt to 11.50 ahead of the release of its second
quarter results later today, with analysts expecting the mobile network
provider to post stronger results.
Alam Maritim jumped 0.23 rgt or 13.94 pct to 1.88 as it made its debut
on the main board.
At the close, three-month interbank rates were quoted at 3.90/92 pct,
while the overnight rate was quoted at 3.45/50.

For Tomorrow...we see more profit taking going on...Short KLOFF...near term target 895 points...

For CPO...market must made a profit taking...target 1500 points in near term...

Regard

Anthony Wong