Kuala Lumpur shares close higher on strong Aug exports, Wall St rally - UPDATE 5/10/2006
- Share prices closed higher after the government
released data showing a trade surplus for August of over 10 bln rgt with
exports up almost 15 pct year-on-year, bolstering sentiment further in a
market already initially upbeat after Wall Street's record-breaking
performance overnight, dealers said.
Remarks by Malaysian central bank governor Zeti Akhtar Aziz that
inflation rate may trend below 3 pct next year provided additional support,
they added.
The Kuala Lumpur Composite Index (KLCI) was up 4.83 points or 0.50 pct at
968.89.
The FTSE Bursa Malaysia 30 large-cap index gained 42.36 points or 0.68
pct to 6,266.92, while the second board index firmed 0.39 to 83.35.
Gainers led losers 404 to 263, with 338 stocks unchanged and 316 untraded.
Trade volume was 569.20 mln shares valued at 860.39 mln rgt.
Sentiment improved further on the government's report that Malaysia's
exports grew 14.8 pct year-on-year in August to 53.49 bln rgt, after the
rally on Wall Street lent momentum to the local bourse, which had been
lackluster due to uncertainty about its near-term prospects, they said.
TA Securities' analyst Stephen Soo said Wall Street's rally on the back
of a perception that the US Federal Reserve may cut its key interest rate
next year played a bigger factor in the market's rebound.
''The effect from Wall Street is finally coming through, but perhaps more
important is the perception by US traders that the Fed may cut interest rates
next year following (Fed chairman Ben) Bernanke's remarks that the US housing
market is in a slump,'' Soo said.
However, Soo cautioned that the local bourse is not out of a bearish
stage yet.
''It will take a stronger catalyst to push the market up on a more
sustainable basis,'' he added.
Soo said he felt the market would perform much better after the festive
holidays, which are about three weeks away.
An economist from Maybank Securities said while the August trade figures
were ''above market expectations,'' he sees Malaysia registering slower
growth in the coming two or three months.
''So the outlook is still uncertain,'' he added.
The market got a further boost today when central bank governor Zeti Aziz
said that inflation rate could trend below 3.0 pct if current economic
conditions prevail and oil prices continue to weaken.
At the close, Road Builder (M) Holdings Bhd was lower on resuming trade
following the stock's suspension yesteray after vice-chairman and major
shareholder Chua Hock Chin sold his stake in the company. Road Builder was
down 0.01 rgt 0.02 rgt at 2.70.
Among heavyweight stocks, Tenaga climbed 0.20 rgt or 2.09 pct to 9.75,
Telekom Malaysia firmed 0.05 rgt to 9.15 while Maybank gained 0.10 rgt to 11.
30.
Elsewhere, Malaysian Airline System Bhd was lower on concerns that delays
in deliveries of A380 aircraft from Airbus would hamper the airline's
turnaround plans and negatively affect its earnings.
Malaysia Airlines was down 0.04 rgt or 1.17 pct at 3.38.
Transmile Group Bhd was higher on hopes that lower crude oil prices will
help reduce the express cargo operators' costs significantly and boost its
earnings, gaining 0.20 rgt or 1.71 pct at 11.90.
Alam Maritim Resources Bhd was higher after it announced its wholly-owned
unit, Alam Maritim (M) Sdn Bhd, has won two charter contracts worth 23.87 mln
rgt.
The counter was up 0.04 rgt or 1.73 pct at 2.35.

For tomorrow...profit taking will push down the market...

For CPO market...correction to 1500 levels...

Regard

Anthony Wong