PROFIT TAKING IN SHARE MARKET

Kuala Lumpur shares close higher led by plantation stocks, blue chips
UPDATE 25/07/2006 - Share prices closed higher on follow-through
interest in plantation stocks and blue chips, dealers said.
They said the plantation sector has attracted interest from foreign and
local investors on hopes for biodiesel, which requires palm oil supplies.
The Kuala Lumpur Composite Index (KLCI) ended up 6.29 points or 0.68 pct
at 934.34.
The second board index was up 0.70 points or 0.78 pct at 90.21.
The plantation sub-index was up 11.64 points at 3,536.16.
Total trading volume was 825.33 mln shares valued at 856.86 mln rgt.
Gainers beat losers 404 to 290 with 338 stocks unchanged.
Chief investment officer at TA Investment Management Choo Swee Kee said
gains in plantation stocks were again driven by biodiesel hopes and higher
demand for palm oil.
Malaysia is one of the largest palm oil producers in the world and
investing in local palm oil producers is a good way of having exposure to the
plantation and crude palm oil (CPO) sector, he added.
Valuation-wise, the local equity market is not considered expensive when
compared with regional peers such as Hong Kong and Singapore, Choo said.
However, the problem is that the size of companies listed on the local
bourse is not on a par with those elsewhere in the region, he said.
On the sectoral outlook, Choo said he likes the oil and gas sector as
Malaysian firms are likely to continue to benefit from projects outsourced by
major oil firms.
Choo said construction stocks will continue to be driven by domestic
factors, but the outlook has improved somewhat compared with two years ago.
Projects announced by the government have so far mainly gone to smaller
construction firms, with the major construction companies still waiting for
larger projects to be unveiled, and hence the outlook for the sector remains
unclear for the time being, he said.
Among blue chips, Tenaga was up 0.10 rgt or 1.10 pct at 9.20 on volume of
3.14 mln shares, Telekom Malaysia gained 0.05 rgt or 0.55 pct to 9.10 on
volume of 1.86 mln shares and Maybank was up 0.20 rgt or 1.9 pct at 10.70 on
volume of 1.27 mln shares.
BAT gained 0.75 rgt or 1.83 pct to 41.75, Dutch Lady was up 0.50 rgt or 5.
62 pct at 9.40 and Genting was up 0.30 rgt or 1.21 pct at 25.00.
At the close, the gains by plantation stocks were offset by
profit-taking, with IOI Corp rising 0.10 rgt to 16.50, Kuala Lumpur Kepong
gaining 0.10 rgt to 11.30 and Asiatic up 0.04 rgt or 1.14 pct at 3.54.
Bursa Malaysia was sharply higher ahead of the release tomorrow of its
results for the second quarter to June, rising 0.15 rgt or 2.61 pct to 5.90
on volume of 1.65 mln shares.


For tomorrow...profit taking must take place...SHORT KLOFF...near term target 910 points...

For CPO ... market may continiued to rally after current day profit taking...target 1600 points in near term

Regard

Anthony Wong