Kuala Lumpur shares close flat as market digests US Fed rate - UPDATE 9/8/2006
- Share prices closed little changed in
rangebound trade as the market began to digest the US Federal Reserve's
decision to keep its key rate unchanged, with the benchmark index slightly
supported by defensive buying of large-cap blue chips, dealers said.
The Kuala Lumpur Composite Index closed the day up 2.18 points or 0.23
pct at 941.26. The FTSE Bursa Malaysia large-cap 30 Index was up 15.86 points
at 6,107.13, while the second board index was down 0.38 points or 0.43 pct at
88.88 .
Losers outnumbered gainers 364 to 260, with 368 stocks unchanged and 326
counters untraded.
Trading volume was 400.05 mln shares valued at 540.50 mln rgt.
"The market seems to be quite stagnant, not having a clear direction," a
local brokerage dealer said.
He said trading is expected to remain dull and rangebound tomorrow as
investors continue to look for fresh leads before committing to any solid
positions in the market.
Dealer said investors will continue to watch corporate earnings results
for leads, and keep an eye out for any new projects to be announced under the
Ninth Malaysian Plan, in particular for the South Johor Economic region.
EON Capital head of research Pong Teng Siew said investors remained
bullish as far as the country's bio-diesel potential is concerned, as well as
on the government policy shift toward domestic spending under the Malaysia
Plan to spur economic activity.
"Even though trading was quiet, buying interest in blue chips is a good
sign that the market's undertone remains firm," Pong added.
TA Securities, in a note to clients, said narrow-range trading is likely
to stretch for another day as investors continue to digest the implications
of the decision by the US to leave the key Fed rate unchanged.
Persistent concerns that inflationary pressure from surging crude oil
prices will adversely impact the economy, and a slowdown in corporate profit
growth could continue to restrict the local market's upside, the brokerage
added.
Among blue chips, MISC-O1 gained 0.25 rgt to 8.70 on volume of 1.52 mln
shares. BAT Malaysia was up 0.25 rgt at 42.50 while Genting advanced 0.20 rgt
to 25.00 on 185,100 shares. Digi.Com rose 0.20 rgt to 12.00 on 364,900 shares.
Titan Chemicals Corp was down 0.04 rgt at 1.14 after the company posted a
steep 70 pct drop in net profit for the second quarter to June.
Scomi Marine firmed 0.05 rgt to 1.11 ahead of the announcement by parent
Scomi Group Bhd of a "corporate exercise". The parent announced after the
close that it plans to raise up to 600 mln rgt via the listing of its
oilfield services divisions on the Singapore Exchange.
TH Group fell 0.015 rgt to 0.61 after posting a net loss of 4.75 mln rgt
for the second quarter to June, reversing a profit of 5.75 mln rgt a year
earlier.
Heitech Padu firmed 0.02 rgt to 1.22 after winning a 39.31 mln rgt
maintenance contract.
Dutch Lady Milk Industrial edged up 0.50 rgt to 9.90 after reporting a 39
pct increase in net profit for the second quarter.
At the close, the ringgit was quoted at 3.6670/6720 to the dollar,
compared with yesterday's close of 3.6705/6755.

For tomorrow...carefull of profit taking...target 900 points...

For CPO market...short CPO if reach RM1700...wait for profit taking...