Kuala Lumpur shares close firmer led by blue chips amid consolidation -UPDATE 19/10/2006
- Share prices closed slightly higher, with gains
posted only by select blue chips in a generally consolidating market ahead of
the long holidays next week, dealers said.
Yesterday's mild inflation figures for September calmed market nerves
about any interest rate hike in the near term but caution about uncertainties
during the long holidays ahead kept trading quiet, they said.
The day's gains are not likely to be sustainable, they added.
The Kuala Lumpur Composite Index (KLCI) was up 2.88 points or 0.30 pct at
978.77.
The FTSE Bursa Malaysia 30-large cap index rose 37.79 points or 0.60 pct
to 6,351.05 while the second board index eased 0.05 rgt or 0.06 pct to 84.46.
Losers outnumbered gainers 354 to 339, with 324 stocks unchanged and 301
counters untraded.
Trading volume was 531.61 mln rgt valued at 836.74 mln rgt.
"The mild inflation in September could indicate that the central bank
will again keep its key rate unchanged at its policy meeting on November 24,
but overall sentiment remained mixed," a dealer from a local brokerage said.
Yesterday, the government announced the consumer price index (CPI) in
September rose 3.3 pct year-on-year, and was up by a slight 0.2 pct
month-on-month.
The local brokerage dealer cautioned that technical readings of the stock
market show some signs of weakness and the benchmark KLCI could shift to a
corrective mode due to a lack of fresh leads.
SJ Securities acting head of research Cheah King Yoong said the market is
expected to continue to be quiet ahead of next week's long break and the KLCI
is seen moving between 974 and 980 points.
Key blue chips contributed most of the day's gains, with heavyweight
Maybank up 0.20 rgt or 1.79 pct at 11.40 and energy firm Tenaga up 0.05 rgt
at 10.00.
Mobilephone operator Digi was higher ahead of its results announcement
tomorrow, rising 0.20 rgt or 1.64 pct to 12.40.
Leisure group Resorts was up 0.20 rgt or 1.64 oct at 11.90 and gaming
firm Tanjong gained 0.20 rgt or 1.64 pct to 12.50.
Rubber glove maker Top Glove was higher on the company's robust earnings
prospects. The stock was up 0.15 rgt or 1.51 pct at 10.10.
Hexagon was sharply higher, gaining 0.24 rgt or 6.49 pct to 3.94.
Construction firm Road Builder was sharply higher after rival IJM Corp
announced its takeover bid for the entire equity interest in Road Builder at
3.00 rgt per share. The stock was up 0.10 rgt or 3.53 pct at 2.93 while IJM
was down sharply as investors worried that the acquisition could be
earnings-dilutive. IJM finished the day down 0.30 rgt or 4.65 pct at 6.15.
Gaming group Genting was lower on continued profit-taking, falling 0.45
rgt or 1.78 pct to 24.80 and state-owned Telekom Malaysia was down 0.10 rgt
or 1.1 pct at 9.00.

For tomorrow...market will go up for next week...

For CPO market...market will correct to 1500 levels...

Regard

Anthony Wong