Kuala Lumpur shares close firmer as interest rate worries ease - UPDATE 23/8/2006
- Share prices closed slightly higher as worries
over high interest rates eased after the central bank governor said inflation
is likely to moderate in the second half of the year, dealers said.
Bank Negara Malaysia governor Zeti Akhtar Aziz also said in her keynote
speech at the 2006 dialogue session with insurers and "takaful" operators
yesterday that the bank's monetary policy will continue to promote
sustainable growth in an environment of price stability.
The central bank will decide on its interest rate this Friday.
The Kuala Lumpur Composite Index (KLCI) closed up 3.24 points or 0.34 pct
at 948.26.
Dealers said, however, judging from today's light trading volume, the
main index is likely to continue to trade in a tight range in the near term.
The FTSE Bursa Malaysia 30 large-cap index was up 27.66 points or 0.45
pct at 6135.64.
The second board index was down 0.32 point or 0.38 pct at 84.11.
Trading volume was 394.642 mln shares valued at 541.681 mln rgt.
Losers outnumbered gainers 362 to 302, with 348 stocks unchanged and 308
counters untraded.
The finance index closed up 1.52 points at 7487.98.
A dealer at a local brokerage said she expects the central bank will
maintain its overnight policy rate at 3.50 pct in the upcoming monetary
meeting as she believes the monetary regulator will be more concerned about
sustaining economic growth for the time being.
The market will also watch a further stream of earnings results in the
coming days, including those of Maybank's full-year results due out tomorrow,
dealers said.
Banking sector analyst Chan Ken Yew at OSK Securities said Maybank's
full-year net profit is likely to be around 2.6 bln rgt.
Maybank closed steady at 10.80 rgt.
"The banking group has made some 1.95 bln rgt (net profit) in the first
nine months; we expect its full-year net profit to slightly outperform our
estimate," Chan said.
Chan said he has a "neutral" call for Maybank, with a fair value pegged
at 11.50 rgt.
National utilities firm Tenaga was higher, rising 0.05 rgt to 9.20 and
Telekom Malaysia gained 0.10 or 1.12 pct to 9.05.
Maxis rose 0.10 rgt or 1.14 pct to 8.90 ahead of its first-half to June
results. The mobilephone network provider announced after the market closed
today that its first-half net profit rose to 960.00 mln rgt from 831.00 mln a
year earlier.
AirAsia was down 0.02 rgt or 1.45 pct at 1.36. The budget carrier will
announce its full-year to June results by the end of the week.
WWE Holding was sharply higher after posting a significant increase in
its nine-month to June net profit, dealers said. The stock rose 0.085 rgt or
12.14 pct to 0.785.
Technodex was sharply higher on its Mesdaq debut, with the stock up 0.075
rgt or 18.75 pct at 0.475, compared with its offer price of 0.40 rgt.
Elsewhere, Malaysia's total vehicle sales fell 5.09 pct in July,
according to data issued by Malaysian Automotive Association.
However, national brands, such as Proton and Perodua, registered positive
grwoth during the month, the MAA said.
National car maker Proton ended the day up 0.06 rgt or 1.29 pct at 4.70,
while UMW Holdings and MBM Resources, major shareholders of compact car maker
Perodua were both lower, with UMW down 0.05 rgt at 7.30 and MBM Resources
lost 0.08 rgt to 2.72.

For tomorrow...SHORT KLOFF...near term target 900 points...

For CPO market... market try to move up...target 1650 points near term...

Regard


Anthony Wong