Kuala Lumpur shares close flat ahead of interest rate decision - UPDATE 24/8/2006
- Share prices closed little changed in thin
trade as investors awaited cautiously the central bank's decision on interest
rates, due out tomorrow, dealers said.
The Kuala Lumpur Composite Index (KLCI) closed down 0.13 points at 948.13.
The FTSE Bursa Malaysia 30 large-cap was up 6.08 points or 0.10 pct at 6,
141.72.
The second board index was down 0.22 points or 0.26 pct at 83.89.
The financial sector sub-index fell 15.17 points or 0.2 pct to 7493.8.
Trading volume was 353.26 mln shares valued 480.81 mln rgt.
Losers outnumbered gainers 407 to 261, with 342 stocks unchanged and 309
counters untraded.
Bank Negara Malaysia will be holding its sixth monetary meeting for the
year tomorrow. The central bank's overnight policy rate has stood at 3.50 pct
since May this year.
"I don't think the central bank will raise the key rate tomorrow as the
governor has mentioned several times that the inflation rate is likely to
moderate in the second half and there is no urgency to raise the rate," an
economist with a local bank-based brokerage said.
Bank Negara Malaysia governor Zeti Akhtar Aziz on Tuesday said Malaysia's
inflation is likely to moderate in the second half, given limited evidence of
demand-led inflation.
The brokerage analyst said if the central bank raises its rate, the
market, which has not factored in the possibility of such a move, is likely
to react negatively.
Among key blue chips, Maybank was steady ahead of its full-year to June
results, with the stock closing at 10.80 rgt.
National utilities firm Tenaga was flat at 9.20 rgt and Telekom Malaysia
was unchanged at 9.05 rgt.
Maxis was lower after posting less than exciting first-half results, with
the stock down 0.05 rgt at 8.85.
"Although (Indian unit) Aircel is expected to see strong subscriber
growth ... (Indonesian operation) Natrindo Telepon Seluler remains a
challenging investment, and uncertainty on its start-up losses increases
overall forecast risk," Kenanga Securities said in a research note.
The research house said it is keeping a "hold" call for Maxis with a fair
value of 9.05 rgt.
KNM Group ended the day sharply higher, up 0.60 rgt or 7.69 pct at 8.40,
after posting a five-fold rise in its interim net profit.
Internet-based surveillance systems provider Mobif was sharply lower,
ending the day down 0.12 rgt or 11.43 pct at 0.93.
Genting rose following a report by Rating Agency Malaysia that the gaming
operator has no intention to raise its stake in property firm Landmarks.
Earlier this week, Genting said it has acquired a 16.65 pct stake in
Landmarks.
Genting was up 0.20 rgt at 24.70 while Landmarks fell 0.08 rgt or 4.49
pct to 1.70.
National car dealer Edaran Otomobil Nasional (EON) lost 0.12 rgt or 5.41
pct to 2.10 after posting a sharp decline in its interim net profit. National
car maker Proton lost 0.04 rgt to 4.66.
"Going forward, we expect a weaker performance (by EON) from slower sales
despite a potential rebound in motor sales in the second half," said Wan
Azhar Mustapha, an automotive sector analyst at OSK Securities, in a research
note.
Gaming operator Magnum 4D ended the day higher on improved interim
results, as well as dividend pay-out, dealers said. The stock rose 0.10 rgt
or 4.17 pct to 2.50.

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

For CPO market...near term target 1550 points...

Regard

Anthony Wong