Kuala Lumpur shares close higher led by blue chips ahead of GDP data - UPDATE 30/8/2006
- Share prices closed higher as blue chips gained
further momentum on last-minute positioning for the release of second-quarter
gross domestic product (GDP) data, dealers said.
The figures are expected to be released about an hour after the market
closed.
A slew of better-than-expected corporate earnings also helped boost
buying interest in blue chips, dealers said.
The Kuala Lumpur Composite Index (KLCI) closed up 4.90 points or 0.51 pct
at 958.12. The FTSE Bursa Malaysia 30 large-cap was up 35.13 points at 6,213.
85, while the second board index was down 0.39 points at 83.18.
Gainers outnumbered losers 373 to 321, with 340 counters unchanged and
285 stocks untraded.
Trading volume was 405.41 mln shares valued at 715.14 mln rgt.
"Accelerated buying in blue chips (in late trade) was partly due to
investors banking on hopes that the GDP figures would continue to be robust
and that inflation is kept at manageable levels," a local brokerage dealer
said.
He said follow-through buying in blue chips may again be expected
tomorrow as the time of the presentation of the national budget on Friday
approaches.
He said certain companies in construction and property could see their
share prices gaining tomorrow on expectations that the industry will be given
favorable allocation in the budget.
"The KLCI is moving up in small steps in anticipation of the budget on
Friday, and boosted as well by the recent pretty good results from blue chip
companies," MIDF Sisma's analyst S.Sharath said.
He said that the upward movement of the KLCI is a "good sign," but noted
that trading still lacks volume and breadth.
On the Mesdaq market, meanwhile, investors are expected to continue to
shy away for at least the near term, as indicated by the thinning trade
volume in the stocks following steep falls in Mobif shares after the company
was queried for unusual movement of its shares, Sharath said.
MIDF Sisma's equity economist Imran Nurginias Ibrahim said that GDP
growth in the second quarter is expected to come in at between 5.5 pct (MIDF
estimate) and 5.6 pct (market consensus).
TA Securities , in a note to clients, said the current coporate earnings
season is drawing to a close, and market players may step aside after having
already taken their positions ahead of the Merdeka Day celebration and the
Budget 2007 presentation on Friday.
The brokerage added cautious sentiment should also prevail in the
lower-liner segment amid investigations into manipulation and short-selling
charges involving highly speculative counters.
TA said the daily momentum indicators for KLCI have moved into the
overbought zone, suggesting that a further rise would be restricted as
profit-taking sets in.
Among key blue chips, BAT Malaysia was up 1.00 rgt at 41.50, Telekom
Malaysia advanced 0.10 rgt to 9.10, Genting rose 0.01 rgt to 24.60 and UMW
Holdings gained 0.10 rgt to 7.45.
Kulim Bhd's was up 0.04 rgt at 4.50 after posting a 187 pct rise in its
net profit for the first half to June to 95.4 mln rgt.
Proton Holdings Bhd was higher by 0.14 rgt at 4.94 despite after
reporting a wider net loss of 58.65 mln rgt for the first quarter to June.
AirAsia Bhd added 0.02 rgt to 1.35 after reporting a sharp rise in its
net profit for the fourth quarter to June.
RHB Capital Bhd rose 0.04 rgt to 2.74 after reporting improved results
for the second quarter to June,
Sime Darby Bhd moved up 0.20 rgt to 5.95 after posting a record full-year
net profit of 1.12 bln rgt

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

For CPO market...correction may reach to 1500 points...

Regard

Anhony Wong