Kuala Lumpur shares close flat after profit-taking pares gains - UPDATE 10/10/2006
- Share prices closed flat after investors
decided to lock in early gains in the absence of fresh developments following
the global condemnation of North Korea's nuclear test, dealers said.
They said, however, the market had enough support from investor interest
in Genting, which helped shore up market sentment toward selected blue chips.
The Kuala Lumpur Composite Index closed up 0.33 points or 0.03 pct at 969.
71. The index shed some of its earlier gains from the opening bell at 970.20
and the morning close at 970.35.
The FTSE Bursa Malaysia 30 large-cap index gained 2.73 points to finish
at 6,274.20, while the second board index rose 0.26 points to 84.24.
Losers outnumbered gainers 376 to 306, with 326 stocks unchanged and 307
untraded.
Trading volume was 697.18 mln shares valued at 770.53 mln rgt.
"The market, after opening stronger on hopes that the North Korea nuclear
test crisis would be resolved soon with the United States' move to find
diplomatic solutions rather than a military one, lost steam as investors
looked for other leads to buy into the market," a local brokerage dealer
said.
He said market sentiment remained subdued as investors refused to take
any significant positions ahead of any new developments on the North Korean
nuclear bomb issue.
"It seems that investors have fallen back to be cautious again on the
nuclear issue and want new developments to ease their anxiety on the matter,"
he added.
This dealer, like the others, however, believes that in the next few days
investor attention is likely to focus on domestic issues like the country's
economic growth and inflation.
"I believe the nuclear issue is a non-event and if any, it is just an
excuse for investors to lock in profits," another local brokerage dealer said.
TA Securities, in a note to clients, said trading is still expected to
remain flat in the absence of strong follow-through buying momentum to
support any further upside.
Genting ended the session up 0.75 rgt at 26.25, rising further on
follow-through buying after gaining yesterday 0.275 rgt to 25.50 ahead of the
close of bidding for a second casino resort in Singapore.
Among the heavyweights, Tenaga fell 0.10 rgt to 9.75, Telekom Malaysia
was up 0.05 rgt at 9.10 and Maybank was flat at 11.20.
KNM Group was higher by 0.35 rgt or 5.65 pct at 6.55 on news that its
units have won substantial new orders from international clients for domestic
and international projects.
Pan Malaysian Industries rose 0.015 rgt or 42.86 pct to 0.05 in active
trade after Bursa Malaysia lifted the PN17 status, which pertains to
financially troubled companies, from unit Pan Malaysia Holdings Bhd.
Kotra Industries advanced 0.05 rgt to 1.39 on news that the company plans
to issue bonus shares on the basis of 6 new shares for every 5 held.
Berjaya Corp gained 0.01 rgt to 0.145 after the company said it is
considering a proposal to take unit Cosway Corp Bhd private.
Pan Malaysia Holdings Bhd wsas flat at 0.065 flat on profit-taking after
it gained earlier after news that it has regularized its financial condition
and is no longer classified as a PN17 or financially-troubled firm.

For tomorrow...any upside is a good sell signal...market not good...

For CPO market...market correction is expected to move below 1500 levels...

Regard

Anthony Wong