Share Market Start To Turn Down Now

Kuala Lumpur shares close lower on caution ahead of rate decision - UPDATE 29/07/2006
- Share prices closed slightly lower on light
profit-taking in blue chips as investors trimmed their positions ahead of the
weekend and the central bank's announcement on interest rates, dealers said.
Banking stocks were mixed ahead of the central bank's rate decision.
After the market closed, the central bank said it has decided to leave key
interest rates unchanged.
The Kuala Lumpur Composite Index (KLCI) ended the day down 2.04 points or
0.22 pct at 934.72, ending the week up 10 points or 1.08 pct.
Plantation stocks provided limited market support, preventing a sharp
slide, with modest gains made on the back of higher crude palm oil prices in
the futures market, dealers said.
The second board index lost 0.40 point or 0.44 pct to 90.34.
Total trading volume was 539.66 mln shares valued at 689.36 mln rgt.
Losers outnumbered gainers 376 to 304, with 340 stocks unchanged and 298
counters untraded.
Among key blue chips, Telekom Malaysia lost 0.05 rgt or 0.55 pct to 9.05
but Maybank was steady at 10.70 rgt and Tenaga was flat at 9.15 rgt.
The financial sub-index ended down 3.13 points or 0.04 pct at 7490.51.
Bumiputra-Commerce was steady at 6.00 rgt and Hong Leong Bank was flat at
5.30 rgt but RHB Capital lost 0.01 rgt to 2.81 while AMMB was up 0.02 rgt at
2.52.
Chief investment officer and managing director of Singular Asset
Management Teoh Kok Lin said he does not expect to see the interest rate
decision having a major impact on the local equity market.
"We expect inflation to peak at around 4 pct for 2006 and 3 pct for the
next year, barring any unforeseen circumstances," he said.
He also said that in the short to medium-term, the local stock market is
expected to remain volatile due to the uncertain geopolitical situation.
Looking ahead to next week's trading, dealers said the central bank is
expected to release a detailed statement on Monday on its international
reserves position as of the end of June and the department of statistics will
release June trade figures on Friday.
In today's trading, casino operator Genting was down 0.35 rgt or 1.39 pct
at 24.90 while its associate company Resorts was sharply higher, rising 0.30
rgt or 2.65 pct to 11.60.
Palm oil producer IOI Corp gained 0.20 rgt to 16.40 while Asiatic was up 0.
04 rgt at 3.52 and Golden Hope was steady at 4.46 rgt.
British American Tobacco lost 0.50 rgt or 1.18 pct to 42.00, mobile phone
network operator Digi shed 0.30 or 2.40 pct to 12.20, and state-owned
shipping firm MISC Bhd lost 0.15 rgt or 1.86 pct to 7.90.
Malaysia Airlines gained 0.02 rgt to 2.80. The national airline said it
has won shareholder approval for a plan to take on board the profits and
losses of the operations of domestic routes from state-owned parent
Penerbangan Malaysia Bhd.
The airline said with this approval, it will be able to focus on
fund-raising and implement its business turnaround plan announced earlier
this year.
At the close, the ringgit was quoted at 3.6655/.6705 to the dollar,
compared with yesterday's closing quote of 3.6730/3.6780.

For next week...we can sure that the market going down trend...SHORT KLOFF...near term target 900 points...

For CPO market...we see profit taking next week after sharp gain today...SHORT CPO when reach 1635 points...

Regard


Anthony Wong