Kuala Lumpur shares close flat amid speculative jitters, Industrial Plan
-UPDATE 18/8/2006
- Share prices closed little changed in a market
generally held in a tight range by concerns that regulators might come down
hard on highly speculative stocks, while the Third Industrial Plan announced
in midafternoon hardly affected trading sentiment, dealers said.
The market is expected to remain quiet next week as investors fully
digest the content of the industrial master plan, they said.
The Kuala Lumpur Composite Index (KLCI) closed down 0.08 points at 942.
00.
For the week, the index closed down 0.27 points or 0.03 pct.
The FTSE Bursa Malaysia-30 large-cap index fell 1.94 points to 6,096.38,
while the second board index was down 0.98 points at 85.52 .
Mobif over the last two days has lost more than 60 pct of its value to
end at 1.24, after Bursa queried the company for unusual trading of its
shares.
Losers outnumbered gainers 359 to 325, with 357 stocks unchanged and 276
counters untraded.
Trading volume was 455.14 mln shares valued at 607.37 mln rgt.
TA Securities technical analyst Stephen Soo said the market is generally
poised to digest the substance of the Industrial Master Plan, which may send
many investors to the sidelines in coming sessions as they also await further
announcements of more corporate earnings results.
He also added that: "Sentiment on lower liners remains weak as retail
investors worry that regulators may decide to designate highly speculative
counters."
"This has also filtered through to the blue chips where gains have
started to come off," he added.
Soo said the sharp drop in certain speculative stocks is also likely to
result in further selling next week, dragging drag down the market.
TA Securities said in a note to clients there were worries that
regulators may again designate highly speculative counters to prevent
retailers from being trapped in severe sell-offs following unexplained sharp
rallies, as seen in the case of Mobif shares.
A local brokerage dealer added that trading will continue to be
rangebound next week, with investors maintaining a-wait-and-see approach
ahead of fresh leads.
Among blue chips, Nestle closed down 0.30 rgt at 24.o0, DIGI shed 0.20
rgt to 11.80 and Kuala Lumpur Kepong slipped 0.20 rgt to 11.40.
Shell Refining Co Malaysia Bhd was higher by 0.20 rgt at 10.80 following
the company's improved net profit for the second quarter to June and its
dividend pay-out.
UMW Holdings Bhd was up 0.05 rgt at 7.40 on its report of a 34 pct
increase in its first-half net profit to 125.45 mln rgt.
Esso Malaysia Bhd surged 0.33 rgt or 14.10 pct to 2.67 after posting a
net profit of 93.27 mln rgt for the second quarter to June, reversing a net
loss of 8.03 mln rgt in the preceding quarter.
Mobif Bhd was sharply lower by 0.53 rgt or 29.94 pct at 1.24 on extended
selling following yesterday's sharp falls.
Iris Corp dropped 0.02 rgt or 7.55 pct to 0.245 on follow-through selling
as investors remained cautious on highly speculative lower liners.

For next week...SHORT KLOFF...target 900 points near term...

For CPO Market...market must move up after recent fall...target RM1700 for October contract in near term...

Regard

Anthony Wong