Kuala Lumpur shares close firmer, led by Digi on capital repayment - UPDATE 2/10/2006
- Share prices closed slightly higher in
rangebound trade, with Digi.com leading the benchmark index into positive
territory ahead of the company's capital repayment date, dealers said.
Digi.com recently set an October 16 entitlement date for its 0.60 rgt per
share capital repayment.
The Kuala Lumpur Composite Index (KLCI) closed up 2.12 points or 0.22 pct
at 969.67.
The FTSE Bursa Malaysia 30 large-cap index gained 10.59 pts or 0.17 pct
up to 6,270.97, while the second board index eased 0.05 points or 0.06 pct to
83.15.
Losers led gainers 337 to 288, with 336 stocks unchanged and 475 counters
untraded.
Trading volume stood at 365.19 mln shares, valued at 649.45 mln rgt.
The ringgit was quoted at 3.6860/6910 to the dollar.
At the close, Digi.com was up 0.50 rgt or 4 pct at 13.0 rgt on volume of
1.14 mln shares.
Dealers said apart from Digi.com, banking stocks also supported the
market.
''We believe thematic plays related to consolidation (of companies in
the) banking sector, and the construction sector could resurface in the next
few weeks. It would be worthwhile to pick up some blue chips as well, ahead
of ... year-end window-dressing activities,'' TA Securities said.
Cheah King Yooung of SJ Securities said he sees better prospects for
financial stocks as interest rates have remained steady and will remain so
for the time being.
However, Hwang-DBS Vickers said it remains neutral on the banking sector,
noting that the banking system registered slower loan growth in August.
''We remain neutral on the banking sector on concerns that over the
longer term, non-performing loans could rise,'' Hwang-DBS said in a note to
clients.
Nonetheless, Hwang-DBS said it is still recommending "buy" on RHB Capital
and AMMB at target prices of 3.20 rgt and 3.00 rgt, respectively.
Banking stocks closed mostly higher, with the financial index up 40.08
pts at 7791.85.
Maybank led the pack, with a 0.10 rgt increase to 11.30, CIMB was up 0.05
rgt at 6.70, HLFG up 0.05 rgt at 5.40, AMMB up 0.02 rgt at 2.50 and RHB
Capital up 0.02 rgt at 2.86.
Among blue chips, Tenaga closed down 0.05 rgt at 9.65 rgt, while Telekom
Malaysia was flat at 9.15.
Elsewhere, Green Packet Bhd was up 0.20 rgt at 4.10 on follow-through
buying after the company announced last week that it is raising new funds
through a private placement of up to 40.40 mln new ordinary shares.
Malaysia Airports Holdings was up 0.12 rgt at 2.17 on speculation the
company will be taken private soon, dealers said.
Gamuda was down 0.04 rgt at 3.98 after announcing a fall in full year to
July earnings.
Ramunia Holdings was up 0.03 rgt at 1.27 after Sime Darby Bhd confirmed
it is in talks to buy a majority stake in the company.

For tomorrow...market will move up to 970 points...

For CPO Market...correction to 1500 points...

Regard

Anthony Wong