Kuala Lumpur shares close flat amid regional concerns over NKorea - UPDATE 5/7/2006
- Share prices closed flat, losing their initial
gains to profit-taking as regional markets fell on concern over North Korea's
test-launch of its missile capability in defiance of international warnings,
dealers said.
They said investors remained worried about further repercussions of the
North Korean action, and expect further market volatility tomorrow.
They added, however, that the underlying market sentiment was still
positive as supported by strong exports data for May, and that reaction to
the North Korean missile launch is likely to be temporary.
The Kuala Lumpur Composite Index (KLCI) closed up 0.90 pts or 0.09 pct at
924.89. The Second Board Index shed 0.36 points or 0.38 pct to 94.45.
Trading volume was 707.74 mln shares valued at 841.57 mln rgt.
Losers outnumbered gainers 477 to 286, with 286 stocks unchanged and 277
untraded.
At the close, the ringgit was quoted at 3.6490/6540 to the dollar,
against 3.6430/64700 in opening trade.
"Overall market sentiment remains fairly solid after (it was bolstered
yesterday) by the stronger export data for in May. It has also been given a
nudge by easing expectations of further rises in US interest rates," a local
brokerage dealer said.
He said he expects the negative reaction to the North Korean missile
tests as more of a knee-jerk response and is going be temporary.
The market may see selective rebound and profit-taking tomorrow, limiting
any price movement, he added.
Dealers added that the direction of the market in the next few days
remains uncertain.
Among blue chips, British American Tobacco closed up 0.25 rgt at 40.50,
Telekom Malaysia gained 0.05 rgt to 9.05 and Malayan Banking advanced 0.10
rgt to 10.70. Green Packet Bhd was higher by 0.08 rgt at 3.04 as the market
welcomed the investment plans by global asset management firm Legg Mason in
the company.
AIC Corp Bhd was up 0.03 rgt at 1.05 on news that a subsidiary has
secured assembly contracts from Samsung Electronics and KEC Corp.
Top Glove Corp Bhd was flat at 9.10 rgt on profit taking after it gained
earlier in the day on the back of its improved results for the third quarter
to May.
K-One Technology Bhd gained 0.04 rgt to 1.85 on news that its unit BIGant
(M)Sdn Bhd has struck a one-year deal with telecommunications provider, Digi
Communications Sdn Bhd.
Petra Perdana Bhd advanced 0.06 rgt to 3.44 after the company said it is
going to issue bonus shares.

For tomorrow...any rebound will be a good chance to SHORT KLOFF...target 890 point in near term...

For CPO market, we may see some selling pressure in the morning...any correction to 1475 point is a good buy signal...short term target 1500...

Regard

Anthony Wong