Kuala Lumpur shares close slightly lower on profit-taking in blue chips -
UPDATE 29/9/2006
- Share prices closed slightly lower on
profit-taking in selected key blue chips led by heavyweight Tenaga Nasional,
as local funds consolidated their positions due to expensive market
valuations, dealers said.
They said the market is expected to consolidate further next week on
extended selling of selected blue chips by local funds.
The Kuala Lumpur Composite Index (KLCI) was down 1.33 points or 0.14 pct
at 967.55. For the week, the KLCI gained 1.77 points or 0.18 pct.
The FTSE Bursa Malaysia 30 large cap-index fell 15.22 points to 6,260.38,
while the second board index eased 0.33 points to 82.85 .
Gainers outnumbered losers however 358 to 319, with 318 stocks unchanged
and 320 counters untraded.
Trading volume was 415.37 mln shares, valued at 904.22 mln rgt.
"The market just cannot seem to break the 970 psychological resistance
level," a local brokerage dealer said.
He said the key index seems to have peaked at the 970 points level and is
expected to trend downwards in the near future ahead of the emergence of
fresh leads.
"Local funds are having a difficult time pushing the index above the 970
points level, as investors view market valuations are getting expensive
especially key blue chips like Tenaga, IOI Corp and Malayan Banking," he
added.
Another dealer said investors will be watching out for the country's
trade figures for August which are expected to be released early next week.
"The market is generally experiencing profit-taking after edging up in
the past few trading days, with average volumes of over 450 mln shares," a
local brokerage dealer said.
He said Tenaga, which has the largest weighting on the KLCI, dragged down
the broader market, with selling pressure increasing after the stock's soft
close yesterday following days of strong gains, which have made the stock
expensive.
The relatively sharp fall in Tenaga made investors jittery, he said.
"Buying interest from local funds is starting to wane again and broader
market valuations are now too high," he added.
TA Securities said in a note to clients that it expects strong selling
pressure to limit the market's upside as the KLCI is currently trading at
fresh six-year highs.
TA added that strong rebounds by RHB and Utama are likely to encourage
profit-taking, given their overbought technical momentum indicators.
Among blue chips, Tenaga Nasional was down 0.15 rgt at 9.70 and Malayan
Banking dropped 0.10 rgt to 11.20, while Telekom Malaysia was flat at 9.15.
Lion Diversified Holdings gained 0.19 rgt to 5.15, after the company said
it plans to return its entire holdings in Amalgamated Containers (ACB) to
shareholders.
ACB lost 0.02 rgt to 0.795 after gaining earlier following the statement
by major shareholder Lion Diversified.
DiGi.com advanced 0.30 rgt to 12.50, after the company fixed the
entitlement date for its capital repayment of 0.60 rgt per share on Oct 16.
Kim Loong Resources was up 0.01 rgt at 1.41, after the company reported a
net profit of 4.16 mln rgt for the second quarter to July, up 81.7 pct
year-on-year.
Jaya Tiasa Holdings rose 0.05 rgt to 2.59, after the timber trading firm
said its net profit for the first quarter to July grew 58.7 pct year-on-year
to 22.49 mln rgt.
Malaysian Resources Corp gained 0.02 rgt to 0.78, after the construction
and property group said its associate firm has been awarded contracts worth
about 391.4 mln rgt in Dubai.

For next week...market will trade higher...

For CPO market...market will trend down to 1500 poins...

Regard

Anthony Wong