Share Market To Face Profit Taking Tomorrow

Kuala Lumpur shares close lower in line with many regional markets - UPDATE 24/07/2006
- Share prices closed lower in line with falls
seen on many regional markets, dealers said.
They said that a local think-tank's reduced forecast for Malaysia's
economic growth added to investors' concerns that the current Middle East
conflict could send prices even lower.
The Kuala Lumpur Composite Index (KLCI) closed down 2.38 points or 0.26
pct at 922.34. The second board Index was down 1.22 points or 1.35 pct at 89.
07.
Total trading volume was 557.71 mln shares, valued at 620.264 mln rgt.
Losers beat gainers 495 to 206, with 300 stocks unchanged and 319 stocks
untraded.
At the close, the ringgit was quoted at 3.6945/6995 to the dollar.
The Malaysian Institute of Economic Research (MIER) trimmed its forecast
for domestic growth this year to 5.2 pct from 5.5 pct previously. It also
said growth next year might slip to 4.8 pct.
Dealers said high oil prices continue to dampen sentiment despite today's
dip in prices.
But the plantation sector managed to post solid gains on expectations of
higher crude palm oil (CPO) prices due to plans to make use of biodiesel fuel
domestically.
The sub-index was up 39.27 points or 1.15 pct at 3,445.59.
A local fund manager noted that whether the rally in the plantation
sector can be sustained will depend on movements in crude oil prices, as
hopes for biodiesel use depend on crude prices staying at high levels.
"Don't forget that supply of the other substitutes to palm oil, such as
the soybean oil will also have an impact on palm oil prices as well," he
added.
He said even if the country achieves its target of replacing 10 pct of
its current diesel consumption with biodiesel fuel, the impact on inflation
is likely to be limited given high crude oil prices.
Among blue chips, Tenaga was down 0.05 rgt or 0.55 pct at 9.10 on volume
of 2.84 mln shares, Telekom Malaysia lost 0.05 rgt or 0.55 pct to 9.00 on
volume of 328,800 shares and Maybank was down 0.10 rgt or 0.94 pct at 10.50
on volume of 1.04 mln shares.
Plantation stocks were generally higher, with IOI Corp gaining 0.30 rgt
or 1.91 pct to 16.00, Kulim was up 0.14 rgt or 3.66 pct at 3.96, Guthrie rose
sharply by 0.13 rgt or 4.68 pct to 2.91 and PPB Oil Palms gained 0.15 rgt or
2.04 pct to 7.50.
Iris Corp, a maker of smart card readers, was the most actively traded
stock, falling sharply by 0.21 rgt or 29.17 pct to 0.51 on volume of 78.64
mln shares. The stock has been volatile lately on speculative interest,
dealers said.

For tomorow...market issuing a strong selling signal...Short KLOFF...near term target 900 points...

For CPO market...profit taking expecting to continue tomorow...Long CPO when price reach 1550 points...

Regard

Anthony Wong