Kuala Lumpur shares close lower on profit-taking, NKorea tension - UPDATE 6/7/2006
- Share prices closed lower as profit-taking hit
especially the blue chips, with investors worried that volatility in
regional markets will persist in the near term due to diplomatic tensions
stirred by North Korea's missile tests yesterday, dealers said.
Markets around the region may take some time to digest that news and it
will not be surprising to see investors gradually trimming their portfolios
here, given the local market's recent gains, they said.
"Like other nerve-wracking news, this will take some time to be fully
digested by the market," a local brokerage dealer said, adding that
diplomatic tensions in the region may worsen further before they ease.
"'Better to play it safe than sorry," the dealer added.
The Kuala Lumpur Composite Index (KLCI) closed down 4.89 points or 0.53
pct at 920.00 The second board index shed 0.21 points to 94.24.
Trading volume was 676.95 mln shares valued at 791.79 mln rgt.
Losers outnumbered gainers 458 to 226, with 307 stocks unchanged and 325
counters untraded.
At the close, the ringgit was quoted at 3.6655/6705 to the dollar,
against 3.6590/6640 in opening trade.
"Trading is expected to remain cautious tomorrow with selling pressure on
blue chips likely to persist. If the market breaches the psychological
920-point support level, which is very likely, sentiment will remain weak,"
the local berokerage dealer said.
OSK Securities said the key index is entering a tough resistance zone,
with the next obstacle after 920 points seen at 935, while support is seen
next at 910 and then 900 points.
Among blue chips, British American Tobacco closed flat at 40.50 rgt ,
Telekom Malaysia and Malayan Banking were down 0.10 rgt at 8.95 and 10.60,
respectively.
Taliworks Corp Bhd was down 0.07 rgt at 1.71 on profit-taking after the
stock rose sharply in trading yesterday in connection with an announcement of
a new contract.
Plantation stocks were lower as investors locked in profits after recent
gains. IOI Corp was down 0.10 rgt at 14.90 and Kuala Lumpur Kepong fell 0.20
rgt to 10.30.
Lion Forest Industries Bhd was down 0.02 rgt at 2.91 on profit-taking
after it gained earlier on news of its proposed capital distribution.

for tomorrow...we still predict more selling pressure as near weekend...SHORT KLOFF...target 885point in near term...

For CPO Market...we may see more profit taking after strong rally today...near term target 1480 point...

Regard

Anthony Wong