KUALA LUMPUR 1/8/2006-- Share prices closed little
changed, with the benchmark index supported by local institutional interest in
select blue chips, dealers said.
Buying in blue chips picked up pace in late trade, reversing early session
losses caused by profit-taking, they said.
The market had previously been edging higher due to investment hopes
generated by the government's Ninth Malaysia Plan, including yesterday's report
that foreign firms have shown interest in investing a total of 15 bln rgt in th
Southern Johor Economic Region.
The Kuala Lumpur Composite Index (KLCI) finished the day up 0.19 points at
936.04. The second board index lost 0.31points to 89.93.
Total trading volume was 531 mln shares valued at 754.91 mln rgt.
Losers outnumbered gainers 405 to 289, with 318 stocks unchanged and 305
counters untraded.
Trading is expected to remain in a tight range tomorrow as investors take a
wait-and-see stance on the market.
Without a positive lead from Wall Street, as well as on the local front,
profit-taking emerged early on in today's trade, before local institutional
investors moved in to pick up some blue chips, dealers said.
A local brokerage dealer said today's profit-taking, however, was "healthy"
for the market as it was well absorbed and provided the market some breathing
space before it could continue its uptrend.
Downward pressure on stocks is expected to persist tomorrow as investors
continue to lock in profits before taking new positions for the immediate term.
"The market rally seems exhausted with less reasons to buy (now)," EON
Capital head of research Pong Teng Siew said.
Pong said trading play in the plantations sector on the bio-diesel theme
seemed to fade away and get replaced by interest stirred by oil and gas, with
gains seen in KNM Holdings, Shell and B.I.G Industries.
TA Securities, in a note to clients, said the market is poised for a brief
profit-taking consolidation phase, as reflected by the declining daily trading
volumes.
It said that what the market needs to extend its previous rise is a fresh
positive news flow such as another announcement of new major projects under the
Ninth Malaysia Plan.
It said the KLCI has shown a trend where early intra-day gains are checked
by profit-taking in afternoon trade, which it said is not a bad thing if the
market is to regain its upward momentum.
"The overbought daily momentum will also need to be neutralized by a
profit-taking dip to encourage buyers to return (to the market)," TA said.
Among key blue chips, BAT Malaysia closed down 0.75 rgt at 41.50, Tanjong
Plc fell 0.30 rgt to 13.50, Resorts World slipped 0.10 rgt to 11.20.
Digi.Com inched lower by 0.10 rgt to 12.10, Tenaga Nasional added 0.05 rgt
to 9.20, Telekom Malaysia was steady at 9.05, and Genting advanced 0.25 rgt to
25.25.
Malayan Banking Bhd was up 0.20 rgt at 10.70 ahead of formalizing a business
transfer agreement related to American Express' consumer and corporate cards
business, as well as merchant acquiring services in Malaysia.
Malaysian Airline System Bhd (MAS) added 0.03 rgt to 2.83 on its efforts to
improve its profitability via fuel surcharge and an air fare increase.
Gadang Holdings Bhd was higher by 0.04 rgt at 0.97 on improved results for
the year to May.
AirAsia Bhd was up 0.01 rgt at 1.29 on news that the transport ministry here
has approved the budget airline's plans to fly to China.
SapuraCrest Petroleum Bhd moved up 0.01 rgt to 0.795 after its unit won an
oil rig contract worth 87 mln usd.
HLG Capital Bhd inched up 0.015 to 0.88 on news that the financial group
reported improved results for the year to June.


For tomorrow...more profit taking and market may going down...target 900 points...

For CPO...market too high...profit taking may track down to 1600 points...

Regard

Anthony Wong