Down Trend Market

Kuala Lumpur shares close flat ahead of industrial data, US rate decision
UPDATE 7/8/2006
- Share prices closed little changed in thin
trade ahead of this week's Federal Open Market Committee (FOMC) meeting, as
well as the release of June industrial production data here tomorrow, dealers
said.
For the immediate-term outlook, they said that, the market is likely to
continue to trade in a tight range with a focus on continued rotational play
in the plantation, construction as well as oil and gas stocks.
The Kuala Lumpur Composite Index (KLCI) closed up 0.49 points at 938.48,
off a high of 942.22 points and a low of 937.44 points.
The FTSE Bursa Malaysia large-cap 30 Index was down 1.31 points or 0.02
pct at 6,085.73.
The second board index was down 0.5 points or 0.55 pct at 89.60.
Trading volume was 431.38 mln shares valued at 522.4 mln rgt.
Losers outnumbered gainers 428 to 257, with 321 counters unchanged and
312 stocks untraded.
"We believe the US Fed rate will be left unchanged at 5.25 pct, judging
from the lower-than-expected addition in July employment and high
unemployment rate (in the US)" said Stephen Soo, a technical analyst at TA
Securities.
Meanwhile, Malaysia's June industrial production data is due out
tomorrow, dealers said, with analysts expecting industrial production in June
to grow at a slower pace amid high oil prices.
They said the June trade figures announced last week have already
indicated a softer trend in exports growth for the remainder of the year.
In addition, growth in the electronics sector is expected to slow going
forward, they said.
At the close, electronics firms were broadly lower, with Unisem down 0.01
rgt at 1.47, Globetronic down 0.005 rgt to 0.30 and AIC Corp down 0.025 rgt
at 0.69.
Among blue chips, Tenaga lost 0.05 rgt to 9.15 on volume of 879,300
shares, Telekom Malaysia was flat at 9.05 rgt on volume of 526,900 shares,
while Maybank gained 0.10 rgt to 10.80 on volume of 1.01 mln shares.
Plantation stocks continued to post solid gains, with Kulim rising 0.18
rgt or 4.29 pct to 4.38, PPB Oil Palms up 0.10 rgt at 7.60, while Kuala
Lumpur Kepong and IOI Corp were both flat at 11.00 rgt and 16.20 rgt
respectively, dealers said, with earlier gains offset by late profit-taking.
AirAsia was sharply higher on news that the budget airline expects its
passenger load to increase to 15 mln for 2007 from 9 mln projected for 2006,
given it will now operate additional domestic routes taken over from Malaysia
Airlines. The stock gained 0.03 rgt or 2.24 pct to 1.37.
Landmarks ended the day sharply lower as investors locked in profits, as
well as on the company's plans for a share placement which could be dilutive
with regard to asset value. The stock dropped 0.17 rgt or 9.50 pct to 1.62.
RHB Capital was lower after the financial group said it has proposed a
500 mln rgt private debt securities exercise to raise fresh capital. RHB
Capital was down 0.07 rgt or 2.51 pct at 2.72, while RHB was up 0.01 rgt or 0.
86 pct at 1.17.


For tomorrow...beware of market fall after straight day up for few days...SHORT KLOFF...short term target 900 points...

For CPO market...after market hit almost 1630...profit taking happen...as it bound back at the close...tomorrow we see BULL will be back...short term target 1700 points...

Regard


Anthony Wong