Kuala Lumpur shares closed firmer as local funds support blue chips - UPDATE 15/9/2006
- Share prices closed firmer as local funds
supported blue chips amid expectations that the market could extend its mild
technical rebound next week, dealers said.
The Kuala Lumpur Composite Index (KLCI) closed up 1.89 points or 0.20 pct
at 958.99. For the week the KLCI has gained 2.29 points or 0.24 pct.
The FTSE Bursa Malaysia 30 large-cap index fell 0.35 point to 6,211.95,
while the second board index gained 0.33 point to 83.54.
Trading volume was 555.04 mln shares valued at 790.51 mln rgt.
Gainers outnumbered losers 376 to 283, with 343 stocks unchanged and 317
counters untraded.
A local brokerage dealer said that despite today's gains "sentiment
remains fragile as the market continues to lack fresh leads."
Many retail investors continue to stay on the sidelines, he noted.
"Even though buying momentum from local institutions has been steady,
retail investors are unimpressed and remain relatively bearish on the market,
" he said.
Dealers said local institutions are expected to support the market at the
psychologically key 950 points level next week, with large-cap blue chips the
principal focus of their buying.
Retail investors may opt for some rotational plays and speculative
second-liners for quick gains, they said.
"I believe local institutions are supporting the market with strong
interest in big capitalized stocks while selling pressure slows down with
foreign funds getting out of the market or just uninterested," said EON
Capital Securities' head of research Pong Teng Siew.
Among blue chips, Genting closed up 0.10 rgt at 24.50, BAT Malaysia
advanced 0.25 rgt to 42.00 and UMW Holdings rose 0.10 rgt to 7.40.
ACP Industries fell 0.005 rgt to 0.915 on profit-taking after gaining
earlier on expectations that it will benefit from a 1.4 bln rgt highway
contract awarded to its major shareholder MTD Capital.
Muhibbah Engineering surged 0.16 rgt or 9.20 pct to 1.90 on news that it
has been awarded a 158.33 mln usd LNG construction contract in Yemen.
Scomi Group added 0.06 rgt or 7.02 pct to 0.915 after the oil and gas
firm reportedly said it expects revenue to reach 1 bln usd by 2009.
Rashid Hussain Bhd fell 0.03 rgt to 1.24 after its major shareholder
Utama Banking Group rejected the Employees Provident Fund's (EPF's) offer to
acquire Utama's entire stake in RHB due to pricing disagreement. Utama
Banking was down 0.07 rgt at 1.05.

For next week...SHORT KLOFF on teusday or wednesday...target 930 points near term...

For CPO market...market weak...target 1500 points...

Regard

Anthony Wong