Kuala Lumpur shares close higher on rate hopes after Aug CPI data - UPDATE 21/9/2006
(- Share prices closed higher as August inflation
data gave rise to hopes that the central bank will again keep its key rate
unchanged at its policy meeting next week, dealers said.
The government announced after market close yesterday that consumer price
index (CPI) rose 3.3 pct year-on-year in August, slowing from a growth of 4.1
pct in July. On a month-on-month basis the CPI fell 0.1 pct in August.
The Kuala Lumpur Composite Index (KLCI) closed up 6.46 points or 0.67 pct
at 966.08.
The FTSE Bursa Malaysia 30-large cap index was up 35.93 points or 0.58
pct at 6,242.90 while the second board index was up 0.21 point or 0.25 pct at
83.53.
Trading volume was 459.557 mln shares valued 982.934 mln rgt.
Gainers outnumbered losers 389 to 258, with 341 stocks unchanged and 323
counters untraded.
Shin Kao Jack, a technical analyst at OSK Securities, said the technical
outlook for the immediate term remains bullish.
The benchmark index may move back to the previous peak of 970 points, he
said, adding that on the downside he sees strong support at the 957 level.
Some traders have expressed the view that it is still a "two-tier"
market, with a few heavyweight stocks supporting the benchmark index while
many lower liners continue to come under selling pressure.
Meanwhile, analysts say that foreign funds have begun considering
shifting more funds into Malaysia following the coup in Thailand.
"Foreign funds have begun considering buying into Malaysian stocks as the
Thai market looks uncertain due to the political turmoil there," said S
Sharath, an analyst at MIDF Sisma Securities.
Among key blue chips, Tenaga rose sharply after several foreign
brokerages upgraded their ratings on the company. The stock closed up 0.20
rgt or 2.02 pct at 10.10.
Telekom Malaysia was up 0.05 rgt or 0.55 pct at 9.10 and Maybank was
steady at 11.20.
Casino operator Genting was higher on bargain-hunting, finishing up 0.40
rgt or 1.72 pct at 23.70. BAT (Malaysia) added 0.50 rgt or 1.19 pct to 42.5.
Amcorp Group fell 0.01 rgt or 0.75 pct to 1.33 on profit-taking.
OSR Brands fell 0.16 rgt or 4.30 pct to 3.56. The company had announced
earlier that it is making a mandatory general offer for KFC Holdings at 4.94
rgt per share. KFC closed unchanged at 4.94 rgt.
Palm oil producers IOI Corp was down 0.10 rgt or 0.63 pct at 15.80 and
Kulim was down 0.16 rgt or 3.64 pct at 4.24.
Oil and gas firm Petra Perdana fell 0.02 rgt or 3.34 after crude oil
prices fell further overnight. Petronas Gas was unchanged at 8.75.

For tomorow...ready to short the market if market move higher...

For CPO market...market is going to move toward 1550 points...

Regard

Anthony Wong