Kuala Lumpur shares close higher on speculative interest - UPDATE
12/07/2006- Share prices closed higher as investors chased
some speculative counters, with trading activity dominated by second-liners,
dealers said.
They said the upside was capped by worries over some government policies,
such as those pertaining to the aviation sector.
The Kuala Lumpur Composite Index (KLCI) closed up 3.63 points or 0.39 pct
at 928.23. The Second Board Index was up 0.76 points or 0.81 pct at 94.61.
Gainers outnumbered losers 468 to 290, with 300 stocks unchanged and 259
counters untraded.
Volume was 1.09 bln shares valued at 1.17 bln rgt.
At the close, the ringgit was quoted at 3.6550/6600 to the dollar.
A local brokerage dealer said the government's decision to allow Malaysia
Airlines to compete in the budget travel market with low-cost rival AirAsia
is proving worrisome for some investors, as the move goes against the
government's previous ruling.
"Foreign investors liked AirAsia for its potential monopoly on the
domestic routes, but now the government has changed its mind and the whole
investment case for AirAsia has changed," he said.
"If we keep changing government policies it will not do well for the
market in the longer term," the dealer added.
Going forward, the market's direction will be driven by corporate
results, he said, adding that he expects the results to be generally
unexciting in view of rising interest rates and high oil prices.
Among blue chips, Tenaga closed flat at 9.20 rgt on volume of 1.94 mln
shares. The company will announce its third quarter to May results on Friday.
Telekom Malaysia was steady at 9.05 rgt on volume of 517,700 shares while
Maybank gained 0.10 rgt at 10.80 on volume of 2.53 mln shares.
Among other gainers Tanjong rose 0.30 rgt or 2.21 pct to 13.90, Nestle
was up 0.30 rgt or 1.29 pct at 23.50, BAT Malaysia up 0.25 rgt at 41.75 and
Lion Diversified rose 0.24 rgt or 5.80 pct at 4.38.
AirAsia was down 0.03 rgt or 2.13 pct at 1.38 on volume of 11.71 mln
share

For tomorrow...we predict big chance of profit taking... Short KLOFF...near term target 895 points...

For CPO Market...more down trend tomorrow as we see profit taking activity pull down 22 points today...short term target 1475 points...

Regard


Anthony Wong