Kuala Lumpur shares close flat as local funds avert mining-led slump -UPDATE 13/9/2006
- Share prices closed little changed, with a
slight upward bias after institutional funds re-emerged from the sidelines to
pick up bargains in the aftermath of a fall led by mining stocks due to the
recent worldwide downtrend in oil and metal prices, dealers said.
They said the market may open higher tomorrow on follow-through
bargain-hunting interest from local institutions, before giving way to
profit-taking again in a market still caught in a tight range.
The Kuala Lumpur Composite Index (KLCI) was up 0.55 points to close at
954.25.
The FTSE Bursa Malaysia 30-large cap index rose 1.42 points to 6,200.26.
The mining sub-index was down 6.61points or 1.27 pct at 515.42, followed
by the plantation sector, with the sub-index down 44.43 points or 1.26 pct at
3,475.40.
The second board index gained 0.36 points to 83.41.
Trading volume was 717.54 mln shares valued at 902.35 mln rgt.
Losers outnumbered gainers 341 to 326 , with 342 stocks unchanged and 311
counters untraded.
"It was the same thing again today -- foreign funds cashing out, as they
did when the market hit a high of 970 points" in intraday trade on September
4, the day Budget 2007 was announced, a local dealer said.
Now "foreign funds are seeing more value in the United States and in
regional markets that are reacting positively to the fall in crude oil
prices. It is only natural that these funds cash out of here and channel the
funds into those more profitable markets," he said.
However, he added that further falls are likely to be cushioned by buying
support from local funds, with the market's immediate strong support level
seen at 950 points.
TA Securities, in a note to clients, said the sudden return of retailers
yesterday to inject some momentum into trading in lower-liners had provided a
counterbalance to the correction undergone by the blue chips sector.
The brokerage said rotational play among lower-liners must continue to
encourage more retail participation, which has been absent for almost two
months now.
Among blue chips, Transmile was up 0.20 rgt at 11.50, Kulim rose 0.18 to
4.24 rgt, and BAT Malaysia advanced 0.25 rgt to 42.00.
Intan Utilities was sharply higher by 0.12 rgt or 6.38 pct at 2.00 on
news that its major shareholder Vista Meranti wants to take the company
private by making a voluntary general offer for the firm.
Malaysia Airlines was up 0.06 rgt at 3.40 on hopes that easing crude oil
prices will help reduce fuel costs and cut losses.
QSR Brands advanced 0.14 rgt to 3.48 after the company said it is making
a mandatory general offer for KFC Holdings (Malaysia) Bhd.
KFC Holdings rose 0.06 rgt to 4.94 on news that QSR Brands is making a
mandatory offer for its shares at 4.94 rgt each.
AirAsia added 0.01 rgt to 1.45 on follow-through buying, with investors
expecting the budget airline to benefit from easing crude oil prices.
Esso Malaysia rose 0.02 rgt to 3.70 on bargain hunting activity after it
fell earlier when the firm told Bursa Malaysia that media reports about its
possible privatization are pure speculation.

For tomorrow...stock will rebound ...target 960 points near term...

For CPO market bottom... up trend may resume...

Regard

Anthony Wong