Market Down Trend Begin

Kuala Lumpur shares close flat as speculative play, bluechip support wane
UPDATE 3/08/2006
- Share prices closed little changed as
rotational, speculative play waned and only mild support for blue chips
remained to support the benchmark index, dealers said.
Many investors moved to the sidelines toward the end of trade on caution
ahead of tomorrow's release of June trade data, they said.
The Kuala Lumpur Composite Index (KLCI) gained 1.22 points or 0.13 pct to
close at 935.29. The second board index fell 0.12 points or 0.13 pct to 90.00.
Total trading volume was 550.44 mln shares valued at 736.19 mln rgt.
Losers outnumbered gainers 369 to 287, with 376 stocks unchanged and 287
counters untraded.
At the close, the ringgit was quoted at 3.6810/6860 to the dollar,
compared with yesterday's closing quote of 3.6755/6780.
Rotational, speculative interest provided some movement for the market in
morning trade, but toward the close of trade this activity lost steam due to
profit-taking, leaving only mild investor interest in select blue chips
supporting the bechmark index in the end, dealers said.
"Expectations of lower growth in exports for the month of June were
definitely hurting sentiment and making investors a bit jittery," a local
brokerage dealer said.
He said it had also caused some investors to lock in earlier gains in
blue chips and lower-liners.
Meanwhile, EON Capital research manager for charts Lee Cheng Hooi said
sporadic buying in lower-liners and speculative play are expected to continue
in the near term, which he said will lend some support to an otherwise dull
market.
"The positive news flow about government spending in new projects under
the Ninth Malaysia Plan has been coming in drips. As such, the market, I
feel, is also reacting by bits-and-pieces with no substantial share price
rises," he added.
TA Securities, in a note to clients, said the immediate KLCI resistance
level of 940 could be quite a significant hurdle, with keen profit-taking
interest checking intra-day strength.
It said a more meaningful profit-taking dip is anticipated, with the
market keeping an eye out for a downturn in daily indicators as a sell signal
at the overbought zone.
"A dip toward the 931, the recent bullish breakout point, is very likely,
but 926 ... offers better support," the brokerage said.
Among key blue chips, Genting closed down 0.20 rgt at 24.60, IOI Corp
fell 0.10 rgt to 16.00, Transmile slipped 0.10 rgt to 12.40.
Tenaga Nasional Bhd was steady at 9.20 rgt despite a media report that
the company's Indonesian operations is facing potential losses due to weak
internal controls.
UEM Builders Bhd was higher by 0.04 rgt at 1.62 in active trade on news
that the UEM Group has been awarded the second Penang Bridge project by the
government.
Telekom Malaysia Bhd was up 0.05 rgt at 9.00 after posting improved
results for the first half to June.
Ramunia Holdings Bhd was down 0.01 rgt at 1.30 despite news that its
unit, Ramunia Fabricators Sdn Bhd, has been awarded a 120 mln rgt oil and gas
fabrication contract.
YTL Corp Bhd advanced 0.06 rgt to 4.94 as traders cashed in on an earlier
rise triggered by the government's statement it will consider building a
high-speed railway between Malaysia and Singapore.


For tomorrow...as weekend...down trend may began as all positive new had been reveal...target 900 points...


For CPO market... correction may bring the price down to RM 1600 ...


Regard


Anthony Wong