Kuala Lumpur shares close higher on blue chip interest, corporate results
UPDATE 21/07/2006
- Share prices closed higher on follow-through
interest in blue chips, with the benchmark index ending at the day's high
after successfully breaching the 920 points resistance level, dealers said.
They said investor sentiment got a boost from strong quarterly results
from DIGI.COM and Public Bank.
Analysts see the market's next resistance at 930 points while strong
support is seen at 922 points.
The Kuala Lumpur Composite Index (KLCI) closed up 8.10 points or 0.88 pct
at 924.72 , ending the week up 11.09 points or 1.21 pct.
The Second Board Index was up 0.32 points or 0.36 pct at 90.29 .
Trading volume was 535.12 mln shares valued at 702.04 mln rgt.
Gainers beat losers 348 to 313, with 319 counters unchanged and 338
stocks untraded.
At the close, the ringgit was quoted at 3.6805 /6855 to the dollar
"Sentiment is cautiously optimistic going into next week," a local
brokerage dealer said, noting positive newsflow from the US.
US Federal Reserve chairman Ben Bernanke said his congressional testimony
this week that US inflation remains contained. The comments gave rise to
hopes that the Fed's rate-hike campaign may be nearing an end.
The dealer said the market is likely to post further gains early next
week on extended buying of blue chips, though profit-taking activity will cap
the advance.
Among next week's economic news, the central bank's highly awaited
monetary statement will be out on Friday along with monthly statistical
bulletin for June.
Among blue chips, Tenaga Nasional and Telekom Malaysia were both up 0.05
rgt at 9.15 and 9.05 respectively, while Malayan Banking gained 0.10 rgt to
10.60.
Genting was up 0.20 rgt at 24.00, Bumiputera-Commerce Holdings added 0.15
rgt to 5.95 and Kulim advanced 0.16 rgt to 3.82.
Plantation stocks were sharply higher on news that government is
ploughing 1.0 mln eur into a promotional campaign.
IOI Corp, the biggest gainer today, rose 0.60 rgt to 15.70, while Kuala
Lumpur Kepong added 0.60 rgt to 10.80 and PPB Oil Palms edged up 0.30 rgt to
7.35.
Iris Corp fell sharply by 0.13 rgt or 15.29 pct to 0.72 affected by news
that the stock exchange cautioned investors against excess volatility in some
unidentified stocks.
BCT Technology was sharply higher, rising 0.115 rgt or 18.70 pct to 0.73
in active trade as the stock made its debut on the Mesdaq market.
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 next week...strong profit taking take place...Short KLOFF...target 895 points...

For CPO market... Strong profit taking occur next week...target 1500 points in near term...

Regard


Anthony Wong