Kuala Lumpur shares close flat as plantations profit-taking erodes gains
-UPDATE 8/9/2006
- Share prices closed flat as mounting pressure
from profit-taking in plantation stocks wiped out gains made earlier on local
institutional interest in select blue chips, dealers said.
Trading next week is seen remaining rangebound as the market is expected
to consolidate further ahead of strong fresh leads, they said.
The Kuala Lumpur Composite Index (KLCI) was up 0.85 points to close at
956.70 . For the week, the KLCI lost 3.99 points or 0.42 pct.
The FTSE Bursa Malaysia 30-large cap index gained 9.20 points to 6,211.
83.
The plantation sub-index fell 23.89 points or 0.65 pct to 3,649.98.
The second board index gained 0.89 points to 82.85.
Trading volume was 354.01 mln shares valued at 666.30 mln rgt.
Losers outnumbered gainers 333 to 331, with stocks 375 unchanged and
281counters untraded.
TA Securities said in a note to clients that the KLCI's fall in the last
three days has relieved the downward pressure on the market.
"Following the recent three-day correction ... near-term downside
momentum for the KLCI should lessen," TA said.
"Going forward, an attempt to build base either at 950, or the stronger
support of 937, will be needed to cushion the downside and encourage
bargain-hunting. Selective rotational plays may highlight lower liners, as
the cautious tone prevails," TA added.
A local brokerage dealer said: "Persistent profit-taking in plantations
stocks is sending a negative signal to the market that maybe the uptrend of
the market is coming to a close."
"Plantation stocks have been the big winners in the market runup and as
such if they start to weaken it will be natural for investors to feel
cautious about the (broad) market going forward," he added.
Overall, he said investors are expected to remain sidelined in the next
few trading days to better gauge the direction of the market, likely toward
the end of next week.
Among blue chip counters, Tenaga Nasional was up 0.10 rgt at 9.25,
Telekom Malaysia was flat at 8.95 rgt at 9.10, and Malayan Banking was steady
at 11.30.
Tanjung Offshore was up 0.02 rgt at 2.28 on its transfer to the main
board today.
Resorts World fell 0.40 rgt to 11.30 , after the company said it plans a
1.1 bln rgt convertible notes issue.
MP Technology Resources was down 0.005 rgt or 6.25 pct at 0.075, after
the company said a special committee has discovered certain financial
irregularities at the firm, which may involve fraud.
APB Resources gained 0.035 rgt to 1.03, after the company said it plans
to form a joint venture with PSCI Industries to collaborate in building and
repairing vessels.
Genting was flat at 25.00 rgt on profit-taking following early gains
after the company said it is "awaiting advice" from unit Genting
International PLC on a reported bid for UK's Stanley Leisure

For next week...market set to rebound...may test 960 points again...

For CPO market...down trend continued to 1500 points...

Regard

Anthony Wong