Share Market Very Near Top

Kuala Lumpur shares close firmer, led by blue chips - UPDATE 27/07/2006
- Share prices closed slightly higher on
selective interest in blue chips, with profit-taking in plantation stocks
paring index gains, dealers said.
The market is expected to trade in a tight range in the next sessions as
investors await the central bank's decision on interest rates at its meeting
tomorrow -- the fifth this year.
The Kuala Lumpur Composite Index (KLCI) was up a modest 2.42 points at
936.76.
The second board index added 0.53 points to 90.74.
Total trading volume was 762.0 mln shares valued at 956.1 mln rgt, with
gainers outnumbering losers 416 to 282, while 320 issues were unchanged.
Dealers said there were renewed hopes that the central bank may delay any
rate hikes, but some analysts still saw a solid chance for some movement on
interest rates at the policy meeting tomorrow.
In a note to clients, Singapore-based DBS Group Research said it expects
the central bank to raise the overnight policy rate by 25 basis points to 3.
75 pct, saying the need to raise local rates is "compelling."
Domestic interest rates are still too low, with the overnight policy rate
having been negative in consumer price index-adjusted terms for most of the
period since May 2005, it added.
Blue chip British American Tobacco was up 0.50 rgt or 1.20 pct at 42.25
rgt, while mobile phone service provider Digi gained 0.20 or 1.65 pct to 12.
30 and gaming stock Genting rose 0.25 rgt or 1 pct to 25.25.
Among market heavyweights, Tenaga was down 0.05 or 0.54 pct at 9.15,
while Telekom Malaysia lost 0.05 or 0.55 pct to 9.05 and Maybank was steady
at 10.70.
Following recent sharp gains, major plantation stocks were hit by
profit-taking. IOI Corp fell 0.30 or 1.82 pct to 16.20 rgt, while Kuala
Lumpur Kepong lost 0.20 or 1.77 pct to 11.10, PPB Oil Palms shed 0.04 rgt or
0.96 pct to 4.14 and Asiatic was down 0.06 rgt or 1.69 pct at 3.48.
Elsewhere, an industry body in Malaysia said it has revised its forecast
for car and commercial vehicle sales to a drop of 6.0 pct this from an
earlier forecast of 2.5 pct growth. The downward revision reflected higher
fuel prices, rising interest rates and weak used car prices.
Malaysia's vehicle sales in the first half of 2006 fell 4.9 pct
year-on-year, the Malaysian Automotive Association said.
The association also said that the Perodua compact car had knocked
national car Proton out of the top spot in terms of market share during the
half.
"Perodua is making all the right moves now, I think their plans to
venture into overseas market are feasible, with a condition that their
capacities will be able to meet the demand," said an industry analyst.
Proton was steady despite the negative news, closing at 5.15 rgt. MBM
Resources, which along with Toyota of Japan makes the Perodua, was also
steady at 2.82 rgt while distributor and partner UMW was unchanged at 7.40.
Bursa Malaysia was up 0.15 rgt or 2.54 pct at 6.05 ahead of its second
quarter to June results. After the market closed it said second-quarter
profit rose to 32.2 mln rgt from 18.8 mln last yar. It also announced a
higher interim dividend of 12.5 sen per share.
At the close, the ringgit was quoted at 3.6730/3.6780 to the dollar.

For tomorrow...profit taking expectes...SHORT KLOFF...target 915 point...

For CPO...we see more up side after most recent profit taking...target 1600 points...

Regard


Anthony Wong