Kuala Lumpur shares close firmer on interest in blue chips - UPDATE 4/08/2006
- Share prices closed firmer, with blue chips
attracting interest on expectations of further gains on Wall Street and
speculation of stronger corporate results next week, dealers said.
But trading sentiment remained generally cautious, with many investors
preferring to stay on the sidelines ahead of the weekend and fresh leads,
they said.
The Kuala Lumpur Compositive Index (KLCI) closed up 2.70 pts or 0.29 pts
at 937.99, ending the week with a 0.35 pct gain from last Friday's close of
934.72.
The second board index rose 0.10 points to 90.10.
Total trading volume was 436.87 mln shares valued at 707.32 mln rgt.
Gainers outnumbered losers 353 to 302, with 361 stocks unchanged and 302
counters untraded.
The market is seen rangebound in the week ahead, with rotational and
speculative play dominating trade.
"Trading will continue to be quiet and sideways next week ahead of fresh
leads," MIDF Sisma's analyst S. Sharath said.
"Generally, people are just waiting for leads before jumping aggressively
into the market. I expect investors will be closely looking at corporate
earnings results next week for leads," he added.
Sharath also said investors will be looking at the country's June
industrial production index (IPI) figures to be relased by the Statistical
Department next Tuesday for leads.
Economists expect the IPI to grow by 4.9 pct year-on-year on the back of
growth in exports and manufacturing.
TA Securities, in a note to clients, said market gains will continue to be
capped by profit taking, partly due to a lack of strong positive leads.
"The sell-on-fact mentality should also encourage selling from investors
disappointed with the lack of positive surprises," the brokerage said.
"Continued failure of the KLCI to overcome immediate resistance at 940
will grease the downside as profit-taking increases," TA added.
Meanwhile, actively traded Mesdaq counters such as FTEC, INIX and
Nasioncom need to rebuild stronger support platforms before attempting
another recovery phase, TA said.
MEMS Technology, however, is building higher support going forward, it
added.
Among key blue chips, Resorts World closed up 0.60 rgt at 11.90, IOI
Corp added 0.20 rgt to 16.20, and Nestle advanced 0.10 rgt to 23.50.
Unisem Malaysia Bhd was up 0.04 rgt at 1.48 after Malaysia's
second-largest listed chipmaker reported a stronger set of results for the
first half to June.
Amway Malaysia Holdings gained 0.15 rgt to 6.50 after the company said it
will pay a dividend of 27.50 sen per share for the third quarter to June.
Muhibbah Engineering (M) Bhd rose 0.03 rgt to 1.45 on news that the
company has been awarded a 48.4 mln rgtsubcontract work on the existing
Penang Bridge.
Gamuda Bhd added 0.26 rgt to 3.76 on hopes the company will announce more
new projects.
UEM Builders shed 0.01rgt to 1.24 on profit-taking after it gained
earlier on follow-through interest after parent UEM Group won the second
Penang Bridge contract.
The ringgit was traded at 3.6755/6780 to the US dollar at the close,
against yesterday's closing quote of 3.6810/6860.


For next week...market is top to turn low...target 900 points near term...

For CPO Market...price may rebound after sharp falling down...near term RM 1630...

Regard


Anthony Wong