Kuala Lumpur shares close higher after Tenaga results, Wall St rally - UPDATE 13/10/2006
- Share prices closed higher in heavy trade, with
gains expanding across the board from the early sessions on hopes of further
favorable corporate earnings data next week after yesterday's strong
full-year results reported by Tenaga Nasional, dealers said.
Initial trade was already upbeat in line with regional gains triggered by
Wall Street's record-close overnight, but gained further momentum at the
morning close and in the afternoon session as laggards caught up with the
rally before the market shuts for the upcoming holidays, they said.
The Kuala Lumpur Composite Index (KLCI) finished the day at its highest,
up 7.92 points or 0.81 pct at 983.54. For the week, the KLCI rose 12.56
points or 1.29 pct.
Dealers said trading next week is likely to see follow-through buying of
Tenaga Nasional following its robust year to August results announced
yesterday.
The FTSE Bursa Malaysia 30 large-cap index rose 58.04 points to close at
6,385.58 , while the second board index advanced 0.40 of a point to 85.45.
Gainers led losers 454 to 296, with stocks 331unchanged and 235 stocks
untraded.
Trading volume was 771.46 mln shares valued at 1.20 bln rgt.
"The market is expected to trend higher next week on strong
follow-through buying in selected blue chips as sentiment is expected to
remain buoyant, with help from a good showing by the global markets, and on
expectations that the world economy will continue to be robust due to firm
consumer sentiment in the world's biggest economy, the United States," a
local brokerage dealer said.
He said the recent surge on Wall Street gave a "much needed boost" to a
market that had been relatively barren in terms of leads.
Wall Street's Dow Jones Industrial average last night broke through 11,
900 points to close with a gain of 95.57 points or 0.81 pct at a record 11,
947.70 points. The market was boosted by optimism over the health of
corporate earnings and economic data that indicated the economy was holding
up even as it slowed. Oil prices, which remained near lows for the year, also
boosted sentiment.
The dealer said the local market's optimism also focused on other major
blue chips such as Digi.Com, with expectations the company will release
favorable third-quarter results on October 20.
A local chartist said the market is likely to trend higher and test the
next resistance level of 985 points, followed by 990 points. Other more
optimistic dealers are looking at the index breaching the 1,000-point
resistance next week, betting on a strong rally before the festive season
begins.
The chartist added, however, it is still too early to tell whether the
market will be able to break 1,000 points as a stronger foundation is needed
in the next few weeks for this to happen.
TA Securities, in a note to clients, said the bullish breakout seen
yesterday should sustain a further upside in the near term, given the strong
buying momentum and bullish market mood.
"Investors should expect further gains, what with the
better-than-expected results from Tenaga," TA added.
Among the heavyweights, IOI Corp rose 0.30 rgt to 16.40, Telekom Malaysia
was up 0.05 rgt at 9.10 and Malayan Banking firmed 0.20 rgt to 11.50.
Puncak Niaga Holdings was up 0.052rgt at 2.93 on speculation that the
utilities firm is planning capital repayment which may involve a cash pay-out
of 1.25 rgt per share.
Sunway Infrastructure fell 0.025 rgt or 14.71 pct to 0.145 after the
company said its debt settlement proposal was not approved at a bondholders'
meeting.
Talam Corp eased 0.015 rgt or 9.09 pct to 0.15 on profit-taking following
earlier gains ahead of the release of its results for the second quarter to
July.
Rexit fell 0.11 rgt to1.93 on prpofit taking after it gained earlier on
follow-through interest on news that Japan's Marubeni Corp is planning to
take up a 10 pct stake in the company.
Top Glove Corp advanced 0.30 rgt to 9.70 after the rubber glove maker
said it plans to acquire a stake in Singapore's Medi-Flex.

For next week...market will down for correction...

For CPO market...down trend to 1500 levels...

Regard

Anthony Wong