Kuala Lumpur shares close flat ahead of central bank interest rate move -
UPDATE 26/9/2006
- Share prices closed flat as investors kept to
the sidelines to await the central bank's policy announcement on interest
rates due after the market close, dealers said.
The market has largely factored in the likelihood of the key central bank
interest rate being left unchanged, accounting for the slightly positive bias
shown by the benchmark index, although trading remained quiet, they said.
Some support came from Wall Street's modest overnight gains after Dallas
Federal Reserve president Richard Fisher suggested inflation would be
dampened by a slowing economy and said that while the housing and auto
sectors are economic weak points, the rest of the US economy is doing
"extremely well."
The Kuala Lumpur Composite Index (KLCI) was up 0.22 points or 0.02 pct at
965.66.
The FTSE Bursa Malaysia 30 large cap index gained 2.59 points to 6,245.19.
The second board index fell 0.21 points to 83.42. Trading volume was 389.
77 mln shares, valued at 625.96 mln rgt.
Losers outnumbered gainers 340 to 311, with 372 counters unchanged and
290 stocks untraded.
"The market seems to have lost its luster for the moment, with investors
taking a back seat on equities due to lack of fresh leads and concerns over
slowing global economic growth," a local brokerage dealer said.
"Everybody was just waiting for the others to make a move in the market;
it's a wait-and-see kind of stance as investors were generally cautious..."
he said.
The dealer said investors were generally looking for more news about
government projects to pump-prime the economy as overseas prospects seemed
rather bleak at the moment.
TA Securities, in a note to clients, said the inability of the market to
extend last week's advance implies weak upside momentum as buyers failed to
follow through.
It said lower liners stayed under profit-taking pressure, and short-term
momentum indicators suggest further consolidation for stocks, which is
required for them to build up new support.
Among blue chips, Tenaga Nasional was down 0.05 rgt at 9.85, Malayan
Banking was flat at 11.30, and Telekom Malaysia eased 0.10 rgt to 9.05.
Island & Peninsular rose 0.02 rgt to 1.31after the property and
plantation group posted a sharp increase in its net profit for the second
quarter to July.
Berjaya Land was up 0.015 rgt at 0.545 despite the property firm posting
a sharp fall in its net profit for the first quarter to July.
Genting advanced 0.30 rgt to 23.90 after it said its oil and gas unit had
discovered dry gas and gas condensate off West Natuna in Indonesia.
Merge Energy was higher by 0.045 rgt or 9.57 pct at 0.515 after the
company reported a sharp rise in its net profit for the second quarter to July
REDtone International Bhd was up 0.015 rgt at 0.515 after the company
said it may consider listing overseas its international roaming operations in
the next 2-3 years
Puncak Niaga Holdings firmed 0.03 rgt to 2.85 on expectations that the
government may approve a water tariff hike soon.
At the close, the ringgit was quoted at 3.6805/6855 to the dollar, from
yesterday's close of 3.6780/6820.

For tomorow...any up is a good sell signal...

CPO market is trend up...if low is good long...

Regard

Anhony Wong