Kuala Lumpur shares close firmer on local fund interest in blue chips UPDATE 28/9/2006
- Share prices closed firmer led by selected blue
chips on interest from local funds, dealers said.
The Kuala Lumpur Composite Index (KLCI) was up 2.56 points or 0.26 pct at
968.88, off its intraday high of 970.79 in morning trade.
The FTSE Bursa Malaysia 30 large cap-index gained 25.58 points to 6,275.
60, while the second board index eased 0.07 points to 83.18.
Gainers outnumbered losers 329 to 317, with 371 stocks unchanged and 298
counters untraded.
Trading volume was 490.16 mln shares valued 702.13 mln rgt.
"Local funds seem to be finally coming back in the market, with strong
plays in blue chips especially big capitalized stocks like Malayan Banking
and Genting," a local brokerage dealer said.
He said even though this seems to be a good development for the market,
he doubts the gains can be sustained as profit-taking is expected to cap
gains above the 970 points level.
"If follow-through buying from local funds fails to materialize in the
next few days, then I believe that profit-taking could likely push the index
back down to 960 points; and if this (support level) is broken, it could fall
to 955 points followed by 950 points," he added.
Meanwhile, SJ Asset Management Sdn Bhd chief investment officer Meor
Khairi Bazid said the market remains generally weighed down by "a still hazy
outlook for global economic health ... with the US still possibly facing a
hard landing. Added to that, China could also be hurt by lower exports."
TA Securities said in a note to clients that technical factors show that
a cautious market undertone will continue to cap the market's upside in the
near term, as domestic leads remain uninspiring.
However, the brokerage said that while institutional investors remain
largely sidelined, pockets of speculative plays by day traders in selected
lower liners should continue to provide some trading highlights.
Among blue chips, Malayan Banking was up 0.10 rgt at 11.30, IOI Corp
gained 0.30 rgt to 16.30, while Tenaga Nasional fell 0.05 rgt to 9.85.
M3nergy was flat at 1.92, after profit-taking erased earlier gains on a
media report that the company has submitted a bid for an oil and gas project
in India.
Hwang-DBS (Malaysia) advanced 0.03 rgt to 1.48, after the stockbroking
firm posted a sharp rise in net profit for the fourth quarter to July.
TA Enterprise was up 0.03 rgt at 0.68, after the company posted a sharp
increase in its net profit for the second quarter to July.
Juan Kuang (M) Industrial gained 0.075 rgt or 7.61 pct to 1.06, after the
company said its net profit for the second quarter to July rose 66.97 pct to
5.41 mln rgt
Mentiga Corp surged 200 pct or 0.44 rgt to 0.66, after Bursa Malaysia
lifted trading restrictions, such as the requirement for full payment prior
to purchases.
Proton Holdings firmed 0.12 rgt to 4.98 on a report that the national car
maker may start assembling Chery vehicles next year, once the company
concludes talks with Alado Bumi.

For omorrow...KLOFF may trade higher...

For CPO market...market down trend resume...target 1500...

Regard

Anthony Wong