Kuala Lumpur shares close flat on caution ahead of results, rate decision
UPDATE 21/8/2006
- Share prices closed flat in thin trade ahead of
earnings results from some big companies this week and the central bank's
interest rate decision this Friday, dealers said.
The Kuala Lumpur Composite Index ended the day up 0.61 point at 942.61.
The FTSE Bursa Malaysia 30 large-cap was up 9.64 points or 0.16 pct at 6,
106.02.
The second board index was down 0.31 point or 0.36 pct at 85.21.
Trading volume was 435.71 mln shares valued at 629.92 mln rgt.
Losers outnumbered gainers 361 to 304, with 338 stocks unchanged and 314
counters untraded.
"We expect corporate earnings to meet analysts forecasts this time around
(compared to the preceding quarter). In that sense, the market should be
supported quite well," said Michael Lai, associate director of investment at
Fortress Capital Asset Management.
Lai said he does not expect interest rate movement to have a major impact
on the market as the central bank's key overnight policy rate is still
considered low when compared with the rates in neighbouring countries.
"We are not worried about the (outcome) of the upcoming central bank's
meeting. As long as the rate remains below 4 pct, it will continue to support
growth," Lai said.
The central bank will hold its sixth monetary meeting this year on August
25.
The bank has held its key rate steady at 3.50 pct in the last meeting.
Meanwhile, inflation has edged up to 4.1 pct in July, from 3.9 pct in June.
Among heavyweights, Maybank was steady at 10.70 rgt on volume of 1.38 mln
shares. The banking group is expected to release its full-year results later
in the week.
Telekom Malaysia gained 0.15 rgt or 1.69 pct to 9.00 after the
state-owned firm said it will receive a total of 700 mln rgt in cash under
its unit Celcom Malaysia Bhd's capital repayment.
Tenaga was down 0.05 rgt at 9.15 on volume of 4.7 mln shares.
Rashid Hussain Bhd (RHB) and Utama Banking Group were both sharply higher
on speculation that the latter is holding out for higher price in its
negotiations with the Employees Provident Fund on its stake in RHB.
RHB rose 0.18 rgt or 19.15 pct to 1.12 on volume of 5.46 mln shares,
while Utama Banking gained 0.14 rgt or 15.58 pct to 1.04 on volume of 3.78
mln shares.

RHB Capital, the holding company of commercial banking entity RHB Bank,
was up 0.11 rgt or 4.26 pct at 2.69 on volume of 939,500 shares.
Pantai Holdings rose 0.06 rgt or 2.61 pct to 2.36. The company saw two
blocks of shares changing hands off-market today at prices ranging from 2.30
to 2.34 rgt.
Landmarks was lower on speculation that the Genting Group acquired a
substantial stake in the property firm for 160 mln rgt. Genting confirmed the
acquisition after market close.
Malaysia Airlines was sharply higher on news that the national carrier
has increased its domestic air fares across the board from today. The stock
rose 0.13 rgt or 4.66 pct to 2.92 on volume of 79,400 shares.


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

For CPO market, range bound trade expected...

Regard

Anthony Wong