Kuala Lumpur shares close higher on strong May exports data - UPDATE 4/7/2006
- Share prices closed higher on active buying
interest in blue chips and lower liners, driven by a sharp improvement in
Malaysia's export data for May and expectations that the market upswing will
be technically sustained tomorrow, dealers said.
They said speculative and follow-through interest in blue chips will help
sustain the upward momentum tomorrow in heavy trade.
The Kuala Lumpur Composite Index (KLCI) closed up 4.85 pts or 0.52 pct at
923.99. The Second Board Index gained 0.60 pts to 94.81.
Trading volume was 1.00 bln shares valued at 1.13 bln rgt.
Gainers outnumbered losers 602 to 201, with 245 stocks unchanged and 266
counters untraded.
At the close, the ringgit was quoted higher at 3.6425/3647 to the dollar,
against 3.6560/6610 in opening trade.
The Ministry of International Trade and Industry announced during the
morning trade that Malaysia's exports in May grew 13.2 pct year-on-year to 48.
28 bln rgt, while imports rose 11.8 pct to 40.23 bln rgt, leading to a trade
surplus of 8.05 bln rgt during the month.
The May surplus marks an increase from the surplus recorded in April,
which stood at 6.63 bln rgt.
Exports for the five-month period increased by 10.5 pct to 230.7 bln rgt,
and imports rose by 12.8 pct to 190.24 bln rgt, resulting in a trade surplus
of 40.46 bln rgt.
"Today's positive market close suggests that gains are sustainable for at
least the near term. Strong follow-through buying in blue chips and
lower-liners gives an impression that sentiment could now be turning
positive, helped by easing concerns over rising global interest rates," a
local brokerage dealer said.
He added that the market is expected to remain bullish tomorrow.
However, he warned that market volatility should not be ruled out as the
direction of the market for the medium to long term remains unclear.
He said that tomorrow's forecast gains may be cut by profit-taking,
adding that trade will be confined within a narrow range at between 923 and
926 points, with strong resistance seen at 930.
Among blue chips, Dutch Lady Milk Industries closed up 0.30 rgt at 9.05,
while Telekom Malaysia and Malayan Banking were flat at 9.00 rgt and 10.60,
respectively.
BIMB Holdings edged up 0.15 rgt or 10.87 pct to 1.53 on follow-through
interest after the stock's sharp gains yesterday.
Tenaga Nasional added 0.05 rgt to 9.20 on news that its agreement to
acquire power generation businesses from Northern Utility Resources has
lapsed.
Bursa Malaysia rose 0.25 rgt to 6.10 on expectations of improved earnings
prospects for the bourse following recent increases in trade turnovers.

As for tommorow,time to make money by Shorting the KLOFF ...short term target...895 point...

For CPO market...after today correction...any drop tomorrow will be very good change to LONG...target 1500 point...

Regard

Anthony Wong