Kuala Lumpur shares close higher led by blue chips on local funds buying
UPDATE 27/10/2006
- Share prices closed higher led by blue chips on
buying by local funds amid bullish sentiment regarding the market's outlook
in the short to medium term, supported by record high closes in regional
markets and on Wall Street, dealers said.
They said the market is expected to perform better next week judging from
the robust trading volumes in the last two days.
The Kuala Lumpur Composite Index (KLCI) finished the day up 7.27 points
or 0.74 pct at 989.90, off a high of 990.71. For the week it was up 10.71
points or 0.11 pct.
The FTSE Bursa Malaysia 30-large cap index gained 43.32 points to 6,418.
54, while the second board index rose 1.08 points to 87.26.
The plantation sub-index was the day's biggest gainer, up 63.64 points or
1.09 pct at 3,762.33, while the mining sector was the only loser, falling 4.
40 points or 0.97 pct to 447.14 .
Gainers outnumbered losers 579 to 230, with 260 stocks unchanged and 250
untraded.
Trading volume was heavy at 906.53 mln shares valued at 1.08 bln rgt.
"Buying momentum seems to be holding up, with some occasional
profit-taking in selected blue chips. I foresee the market will continue to
trend upwards next week as momentum builds," a local brokerage dealer said.
He said follow-through interest in selected blue chips is expected to
continue next week as investors remain bullish about the market's prospects.
Dealers said investors are expected to continue watching Wall Street and
regional markets closely for leads.
They however said selling in blue chips is expected to limit the upside
as investors lock in gains before taking new positions.
"Investors, who were sidelined before the long weekend, seem to have
sprung back strongly into the market with renewed vigor. This is partly due
to the fact that the market is playing catch-up with regional bourses and
Wall Street which have risen sharply in recent days," said TA Securities'
technical analyst Stephen Soo.
Soo said that sentiment has also been boosted by market talk that foreign
funds are starting to re-enter the market in a big way.
TA Securities said in a note to clients that resurgent buying momentum in
the broader market after the long three-day Hari Raya break earlier this week
should sustain further upside, given the lag effect following the strong
performances by overseas markets while the local bourse was closed.
"The KLCI could try for the immediate upside hurdle at 990 before
profit-taking consolidates gains in the near term, given the overbought
signals seen on short-term momentum indicators," it said.
Among blue chips, BAT Malaysia was up 1.00 rgt at 42.75, IOI Corp gained
0.40 rgt to 17.40 and Resorts World advanced 0.20 rgt to 11.80.
Pan Malaysian Industries was sharply lower by 0.005 rgt or 11.11 pct at 0.
04, after Bursa Malaysia rejected its application for an extension of time
regarding the submission of its revised regularization plan.
Bursa Malaysia gained 0.05 rgt to 6.00, ahead of the release next week of
its results for the third quarter to September.
Genting rose 1.00 rgt or 3.92 pct to 26.50 on follow-through interest
after yesterday's sharp gains.
MTD Capital was sharply up by 0.18 rgt or 9.57 pct at 2.06, on
speculation the toll operator may be taken private.
Sunrise rose 0.05 rgt to 1.65 on media reports the property developer
plans to launch property developments worth about one bln rgt in the current
year to June 2007.

For next week...market is very bullish...target 1000 points...

For CPO market...upside limited...beware of profit taking...

Regard

Anthony Wong