Kuala Lumpur shares close easier on profit-taking; retailers shun trade -
UPDATE 11/9/2006
- Share prices closed little changed, with
profit-taking especially in construction and plantation stocks giving the
index a slightly negative bias, although trade was rangebound as retail
investors shunned the market on a lack of fresh leads, dealers said.
They said caution may continue to characterize trade tomorrow until new
leads emerge.
The Kuala Lumpur Composite Index (KLCI) was down 0.98 points to close at
955.72.
The FTSE Bursa Malaysia 30-large cap index fell 7.02 points to 6,204.
81.
Construction stocks led the losers, with the sub-index down 1.46 points
or 0.92 pct at 157.22, followed by the plantation sector, with the sub-index
down 30.43 points or 0.83 pct at 3,620.24. The second board index dropped 0.
29 points to 82.56.
Trading volume was 360.17 mln shares valued at 643.82 mln rgt.
Losers outnumbered gainers 393 to 266, with 353 stocks unchanged and 307
counters untraded.
"Trading remained quiet and sideways as investors looked for new leads,"
a local brokerage dealer said.
He said investors were reluctant to take any significant position as they
expected the market to consolidate further, with some participants seeing the
current market valuations as a "bit expensive."
The dealer also noted a weakening of buying interest from local
institutions over the last few days.
"Market movement this week is expected to remain rangebound as investors
continue to lock in profits after the brief rally that followed the national
budget for 2007," MIDF Securities' analyst S. Sharath said.
The market's current weaakness is "also due to the absence of any strong
positive leads," he added.
Plantation stocks which had been strong market movers were also hit by
profit-taking, while the continued fall in Mesdaq counters due to their
higher risk portfolio served as another negative factor for the market, he
said.
The drop in world petroleum prices is a positive, "but it is only one of
the many factors affecting overall sentiment," he added.
TA Securities, in a note to clients, said bearish momentum and trend
indicators on the KLCI suggest that a further correction may be necessary
following the recent confirmation of a significant double top at 970 points.
"Despite the overbought technical conditions having been neutralized,
which lessened the KLCI's near-term downside momentum, a base-building phase
to form a higher support platform needs to ensue before market players get
convinced the present uptrend still has some legs," the brokerage added.
TA said the index's immediate support at 950 points is expected to be
tested this week as the market consolidates, with an immediate upside seen at
960 points.
Among blue chips, IOI Corp was down 0.20 rgt at 16.30, Shell Refining Co
fell 0.20 rgt to 10.30, while Malayan Banking dropped 0.10 to 11.20.
Property firm Landmarks ended flat at 1.64 on profit-taking after it
gained earlier on news that Genting unit Phoenix Spectrum has raised its
stake in the company to 24.38 pct.
IJM Corp was unchanged at 6.10 rgt after profit-taking erased earlier
gains on news that a consortium which it leads has secured a 1.32 bln rgt
contract in the Middle East.
Kian Joo Can Factory was higher by 0.06 rgt at 2.48 on news that the
company plans to issue bonus shares on the basis of one share for every five
shares held.
Rashid Hussain (RHB) and Utama Banking Group were higher, by 0.13 rgt and
0.065 rgt at 1.21 and 1.05, respectively, on hopes that RHB's stake sale
discussions between the Employees Provident Fund (EPF) and Utama Banking may
be concluded soon.
Dunham-Bush (Malaysia) was up 0.13 rgt or 6.40 pct at 2.16 after its
major shareholder Berjaya Corp said it plans to sell its entire stake in the
company

For tomorrow...target market to rebound and to test 960 points againt...

For CPO market will rebound first to 1570 points then go down to 1500 points...

Regard

Anthony Wong