Kuala Lumpur shares close lower on caution ahead of July CPI data - UPDATE 15/8/2006
- Share prices closed lower as investors locked
in profits in blue chips ahead of Malaysia's July consumer price index data
(CPI) data due tomorrow, dealers said.
The Kuala Lumpur Composite Index (KLCI) closed down 2.06 points or 0.22
pct at 943.94.
The FTSE Bursa Malaysia-30 large cap index fell 23.14 points to 6,105.30,
while the second board index was down 0.57 point at 87.90.
The finance sector posted the biggest losses, with the sub-index down 56.
03 points or 0.75 pct at 7,433.09, followed by the industrial sector with a
loss of 0.60 pct.
Losers outnumbered gainers 430 to 268, with 323 stocks unchanged and 297
counters untraded. Trading volume was 421.88 mln shares valued at
607.75 mln rgt.
"The profit-taking is expected and is likely to heighten tomorrow if CPI
figures are above market expectations at between 3.6 pct and 4 pct," a local
brokerage dealer said.
"Anything above that would send worrying signals of higher inflation
eating into corporate earnings and slowing consumer spending," he said.
He said plantation stocks will continue to face selling pressure
following recent gains on the back of rising crude palm oil prices.
EON Capital head of research Pong Teng Siew said he expects the market to
remain rangebound in for the next one to two days as investors wait for
inflation figures from Malaysia as well as the US.
He estimates that domestic inflation for July would come in at between 3.
5 pct and 4.0 pct, while the average for the full-year is seen at under 4.0
pct
Among key blue chips, Maybank fell 0.20 rgt to 10.60 and Tenaga eased 0.
05 rgt to 9.15, while Resort World shed 0.20 rgt to 11.70.
Other notable losses were those of Transmile, which dropped 0.20 rgt to
12.20; PPB Oil Palms, which fell 0.15 rgt to 8.00; Kulim, down 0.10 rgt at 4.
42; and Digi, which inched 0.10 rgt lower to 11.90.
Bursa Malaysia was up 0.05 rgt at 5.85 following its CEO's reported
upbeat comments on earnings prospects.
CB Industrial Product rose 0.12 rgt to 3.20 on news that its unit has won
two contracts, while MISC Bhd shed 0.15 rgt to 8.65 after announcing
weaker-than-expected net profit for the first quarter to June.
Favelle Favco was up 0.14 rgt or 25.45 pct at 0.69 in active trade on its
second board debut.

For tomorrow...SHORT KLOFF if reach 946 point...target 900 points...

For CPO market...BULL WILL BE BACK...target RM 1700...

Regard

Anthony Wong