Kuala Lumpur shares close lower on caution/profit-taking before CPI data
-UPDATE 16/8/2006
- Share prices closed lower on extended
profit-taking in blue chips as the market traded cautiously for most of the
day before the government released the inflation figures for July, dealers
said.
The Kuala Lumpur Composite Index (KLCI) closed down 5.96 points or 0.63
pct at 937.98.
The FTSE Bursa Malaysia-30 large cap index fell 34.52 points to 6,070.78,
while the second board index was down 0.29 point at 87.61.
The industrial sector posted the biggest losses, with the sub-index down
20.59 points or 1.03 pct at 1,969.66, followed by the consumer sector with a
loss of 0.58 pct.
Losers outnumbered gainers 394 to 292, with 348 stocks unchanged and 284
counters untraded. Trading volume was 496.81 mln shares valued at
737.52 mln rgt.
The Statistics Department announced just as the market was closing that
Malaysia's consumer price index in July rose 4.1 pct year-on-year, and was up
by a slight 0.2 pct month-on-month.
Given that the market had no chance to react to the figures, today's
profit-taking might continue its momentum tomorrow as the inflation rate
announced for July slightly exceeded some expectations, and as investors take
positions for the next announcement, which is on the 2007 Budget, due
September 1, dealers said.
"Profit-taking could likely continue tomorrow as investors might lock in
previous gains in the runup to the announcement of the national budget on
September 1. It's (going to be) a snowball effect -- profit-taking spurs more
people to lock in profits," a local brokerage dealer said.
He said selling pressure on blue chips could see the market testing the
935-point level tomorrow as plantation stocks are likely to ease further
after having made sharp gains.
Among key blue chips, BAT Malaysia fell 1.25 rgt to 41.00 and Genting
eased 0.50 rgt to 24.20, while Kuala Lumpur Kepong shed 0.30 rgt to 11.30.
Other notable losses were those of Tanjong, which dropped 0.30 rgt to 13.
00 ; Resorts World, which fell 0.10 rgt to 11.60; Roadbuilder, down 0.10 rgt
at 2.12; and Kulim, which inched 0.12 rgt lower to 4.30.
Top Glove was sharply lower by 0.35 rgt at 8.65 on a report that the
Immigration Department has found 2,424 illegal workers without valid work
permits at a manufacturing plant of a listed rubber glove maker, and that
immigration officers have detained the company's managing director and legal
manager to help with their investigations.
Mah Sing Group Bhd was steady at 2.60 despite posting a strong set of
results for the second quarter to June.
Green Packet Bhd was higher by 0.12 rgt at 3.80 after posting stronger
results for the second quarter to June.
Asia Pacific Land Bhd (AP Land) was down 0.03 rgt at 0.355 on
profit-taking after it rose earlier in active trade following its decision to
sell properties for 680 mln rgt to cut its debt.
Merge Energy Bhd was higher by a sharp 0.025 or 6.67 pct at 0.40 on news
that a unit has won a 208.75 mln rgt contract

For tomorrow...look for market rebound...target 950 points...

For CPO market...after sharp profit taking and building base...look for long run to 17oo points for october contract...

Regard

Anthony Wong