Kuala Lumpur shares close flat; KLCI mildly supported ahead of Budget - UPDATE 29/8/2006
- Share prices closed little changed as investors
took a cautious stance ahead of the national Budget 2007 presentation on
Friday, with mild interest in select blue chips providing some support to the
benchmark index, dealers said.
The market's downside will continue to be firm amid a generally positive
view of the budget in another rangebound trade tomorrow, they added.
The Kuala Lumpur Composite Index (KLCI) closed the day up 0.44 points or
0.05 pct at 950.96. The FTSE Bursa Malaysia 30 large-cap index was up 17.44
points at 6,164.11. The second board index was down 0.51 points at 83.74.
Losers outnumbered gainers 359 to 304, with 333 stocks unchanged and 323
counters untraded.
Trading volume was 362.77 mln shares valued at 615.25 mln rgt.
According to an analyst at MIDF Sisma Securities, the technical charts
show that "the market is experiencing a mild technical uptrend."
He said this is likely due to investors' optimism about the budget, which
is anticipated "to be more exciting and significant in providing goodies for
a number of sectors, especially the automotive industry."
EON Capital Securities research manager for charts Lee Cheng Hooi said
the downside remains firm as investors look positively to the budget for
support, although he sees normal profit-taking next week as the market
digests the budget's content.
TA Securities, in a note to clients, said technical momentum and trend
indicators point to an upward movement for the KLCI this week following last
week's rise to a fresh three-month high, although it also warned that the
upside could be capped by fading interest ahead of the Merdeka Day holiday on
Thursday and the unveiling of the budget on Friday.
Many "investors should also remain sidelined pending the final leg of the
current corporate results season," it added.
TA also said that lower liners could provide some index support on
technical factors or bargain-hunting following a previous correction.
Among key blue chips, Esso Malaysia was up 0.12 rgt at 3.70, Resorts
World advanced 0.20 rgt to 12.20, Genting rose 0.20 rgt to 24.50 and Malayan
Banking gained 0.20 rgt to 11.20.
MBM Resources , a major shareholder of compact car maker Perodua, was up
0.08 rgt at 2.83 after posting a sharp rise in net profit for the second
quarter to June,
Edaran Otomobil Nasional was higher by 0.02 rgt at 2.05 on a report that
the car dealer is in talks with Volkswagen on distribution rights here.
Ranhill was sharply higher by 0.08 rgt or 6.56 pct at 1.30 on a report
that the construction firm may secure a 1.3 bln rgt power plant contract in
India.
Top Glove Corp Bhd was steady at 8.70 rgt despite media reports that the
rubber glove maker has been fined 11.4 mln rgt for hiring foreign workers
without valid work permits
Sime Darby was flat at 5.80 on profit-taking after it gained earlier
ahead of its results for the year to June, due for release tomorrow.
Tong Herr Resources Bhd advanced 0.22 rgt or 7.14 pct to 3.30 after
reporting a 43 pct rise in net profit for the second quarter to June and a
dividend pay-out of 0.16 rgt per share.

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

For CPO market not good...near term 155o points...

Regard

Anthony Wong